Notable Comments from Bernanke's Press Briefing

Major reaction by the markets following the FOMC announcement and Bernanke's comments was a major bid that pushed the market to new highs.

The most significant thing to come out of Bernanke's statements was that the Fed would continue easy monetary policy. That is positive for US equities as interest rates will remain low and the the stock market is certainly a better alternative to grow your money than any interest bearing account.

NOTABLE COMMENTS:

On GDP Projections being lower:
Fed expects weaker number as well, maybe under 2%. But this should only be a transitory phenomenon.

On when Fed will consider Tightening Monetary Policy:
Fed watching to be sure recovery is sustainable. Wants to see continued growth and job creation. At the same time Fed is monitoring inflation. Believes rises in energy and commodity prices are only transitory.
Until these conditions are violated, Fed will continue with easy monetary policy.

On weakening US Dollar:
Dollar fluctuation is normal. The weakened US dollar is the result of an unwinding of the safe haven carry trade that pushed the dollar higher following the financial crisis in 2008.
Strong and stable dollar is in the best interests of Americans and global economy. US monetary policy is aimed at maintaining low inflation, trying to acheive max employment and a stronger US economy. This will generate fundamentals that will help the dollar.

On gas and food prices rising and what can Fed do about this?
Gas and energy price increases due to supply and demand due to emerging markets growth as well as to disruptions in supply as a result of unrest in the MENA region. Not much Fed can do about gas prices w/out derailing growth. View is that commodity prices will not continue up.

On QE2 being unsuccessful:
It was never intended to be a panacea. It takes time, but program has been successful based on gains in the stock market and reduced spreads in the credit markets. Easing financial conditions should lead to better econ conditions based on decades of experience
Easing should remain constant after June

On US Debt and S&P downgrade:
This is nothing new, it is well understood that the United States debt levels are a concern.
It only reinforces that we need to address it. This is constructive.

Watch FOMC Press Conference With Ben Bernanke Today at 2:15pm EST Here

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Chairman Ben S. Bernanke will hold press briefings four times per year to present the Federal Open Market Committee's current economic projections and to provide additional context for the FOMC's policy decisions.

In 2011, the Chairman's press briefings will be held at 2:15 p.m. following FOMC decisions scheduled on April 27, June 22 and November 2. The briefings will be broadcast live on the Federal Reserve's website. For these meetings, the FOMC statement is expected to be released at around 12:30 p.m., one hour and forty-five minutes earlier than for other FOMC meetings.

The introduction of regular press briefings is intended to further enhance the clarity and timeliness of the Federal Reserve's monetary policy communication. The Federal Reserve will continue to review its communications practices in the interest of ensuring accountability and increasing public understanding.

Markets Hold Bid

Earnings results continue to be better than expected in most cases. Amazon was an exception as earnings disappointed yesterday afternoon, though the markets showed little reaction.

Markets very bullish after making new highs yesterday and showing continued strength this morning. I like buying the dips. However, I will be waiting for the FOMC announcement at 12:30 EST. The news is being released early to make way for a Q&A session with Ben Bernanke at 2:15pm EST. It will be interesting to see what is said about a potential QE3 or no QE3. One thing is certain, any further easing measures will not be referred to as QE3... In any case, today's announcement has the potential to move the markets and will be the most interesting news of the day...

Levels to watch today on the ES:
Resistance above at: 1346-1347, 1350-1351, 1353-1354
Support below at: 1343-1344, 1340-1341

Assuming there is negative reaction to the FOMC announcement, the 1334-1335 support could come into play...