Macroeconomics

When Federal Reserve Chairman Ben S. Bernanke spoke Wednesday morning on Capitol Hill, his words seemed to hint that the central bank's stimulus wouldn't be pulled back anytime soon. The Dow Jones industrial average surged.

One way President Obama can begin to put the IRS scandal behind him is by proposing comprehensive tax reform. Beyond the usual Washington theatrics, the real problem is that the U.S. tax code is unbelievably complicated, clocking in around 74,000 pages, with all rulings, regulations and other material. The greater the complexity, the broader bureaucrats' powers to determine the status of an individual, corporation or association. A radically simplified tax code, even one that raised more revenue, would be good politics and good economics.

Commodities and bonds stand to lose a fair amount if the Fed starts turning off the taps

THE Australian dollar dropped to a one-year low following positive comments on the US economy by the head of the Federal Reserve.

GOLD futures prices fall after Federal Reserve minutes show the central bank considered an early end to its quantitative easing program.

MIXED MESSAGES: Stocks surged in the early going after Fed chairman Ben Bernanke told Congress the central bank was unlikely to pull back from its stimulus programs soon. Then minutes from a Fed meeting were released that suggested other policymakers think a pullback is possible as early as next month, and stocks dropped.

During the Q&A following Chairman Bernanke's testimony before the Joint Economic Committee today, Senator Sanders said he was preparing legislation to prohibit the payment of interest on excess reserves, and, indeed, to require banks to pay to hold excess reserves. The idea was to "unlock" the excess reserves held by the banking system and get them out in the economy through more vigorous bank lending. Chairman Bernanke pointed out that individual banks might reduce their reserve position, but that the banking system as a whole could not.

• Dow, S&P both rise and fall more than 1 pct in same trading day * FOMC minutes show members open to tapering, disagreement on conditions * Bernanke touts benefits of Fed easing, but hints could act * Dow off 0.5 pct, S&P off 0.8 pct, Nasdaq off 1.1 pct By Angela Moon NEW YORK, May 22 (Reuters) - U.S. stocks fell on Wednesday with the S&P 500 posting its biggest decline in three weeks, after minutes from the latest U.S.

THE NZ dollar lost nearly a cent against the US dollar after US Fed chairman Ben Bernanke made noises about tapering off on quantative easing.

Submitted by Lance Roberts of Street Talk Live blog,

Stocks looked to be off to the races Wednesday, rallying out of the gate then marking fresh highs as Federal Reserve Chairman Ben Bernanke delivered prepared remarks on Capitol Hill that seemed to indicate no end to the central bank's stimulus effort is in sight.

Martkets surged to record highs on Wednesday, as US Federal Reserve chairman Ben Bernanke said it would not slam the brakes on quantitative easing any time soon, but they quickly fell back aagain mid fears that it may start tapering later this year.

Tectonic plates are shifting within the Fed' Federal Open Market Committee (FOMC) as hawks and doves battle it out over QE. The FOMC minutes for April/May meeting, released on Wednesday hours after Chairman Ben Bernanke concluded his testimony before Congress, fueled the flames of uncertainty, with several FOMC participants pushing to taper asset purchases as early June, when the FOMC is scheduled to have its next meeting.

A new C.D. Howe Institute report suggests that some highly regulated industries impose an unreasonable cost on consumers

Several Federal Reserve policymakers this month favored slowing the Fed's efforts to maintain record-low long-term interest rates as early as June - if the economy showed strong and sustained growth. But those officials appeared at odds over what evidence would demonstrate such gains.

Plus, thank U.S. shopping malls for holding down Canadian prices

FEDERAL Reserve chairman Ben Bernanke warns against prematurely ending quantitative easing, but FOMC minutes show it's been considered.

By BERNARD CONDON

NEW YORK - Stocks are moving higher Wednesday after Federal Reserve Chairman Ben Bernanke said it was too soon for the central bank to pull back on its economic stimulus programs.

Investors were also encouraged by news that sales of previously-occupied U.S. homes rose last month to the highest level in three and a half years.

The Dow Jones industrial average was up 40 points before Bernanke began his testimony before a congressional committee at 10 a.m., then jumped as much as 154 points shortly after he began speaking.

Markets went on a wild rollercoaster ride as Fed Chairman Ben Bernanke addressed Congress? Joint Economic Committee, first making it clear that tapering QE today would be unproductive, then admitting that it could happen over the next two FOMC meetings if warranted by the data. Channeling his inner Greenspan, Bernanke filled the ether with words meant to mask his underlying intentions, but a few contradictions did make their way into his speech which reveal his easing bias. QE, it seems, is still here to stay.

Sure, Ben Bernanke is worried about the U.S. government's debt problem. He just thinks we're going about solving it the wrong way.Unfortunately, the people who could do things the right way aren't paying any attention to him.More...

(Kitco News) - Gold's volatile reaction to Federal Reserve Chairman Ben Bernanke's comments to Congress Wednesday shows how much the market leans on every word regarding the fate of the Fed's bond-buying program.

The market is on a tear, up 17% so far this year for the S&P 500 Index and the SPY that tracks it. Such strong short-term performance is reason for caution in the short-term ... And we may be in for some pullbacks in the market in the near future. However, the medium and long-term outlook for the US economy and stock market is excellent.

The Federal Reserve took financial markets for a ride Wednesday, pushing stock prices up in the morning then sending them down in the afternoon.

The duty of every columnist is to share, not hide, his beliefs. Here is a core belief of mine: Growth--economic and personal--is not an option. Let's go further and assert that growth is a moral requirement, for no other reason than that the opposite of growth is stagnation--a death of sorts.