Bernanke still expects US economy to grow but has given a clear message to the markets that he is prepared to provide a safety net to the US economy if it slows from here.
If required Benny will hit the printing presses, which is what the market wanted to hear and it rose 165 points on Friday. Now for Obama and Congress to approves the 2nd stimulus next month, Chinese will start to increase lending and infrastructure projects and we will see some incredible mineral prices in 2011 and 2012!
We are going to see some significant share price rises as these high mineral prices turn into record profits and make new projects viable with approvals granted quickly.
There are also billions of dollars in Super and Investment funds just sitting in cash waiting for the market to show signs of life and it will lift the ASX and shares like FerroWest considerably over the next 12-18 months!
The Federal Open Market Committee, the central bank's policy body, "is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly," Mr Bernanke said.
