This Week With J. Mark Nickell & Co.
Despite volatility of recent days the Dow Jones Industrial Average and the S&P 500 Index® recently marched to even higher all-time highs. A large part of the fuel is Federal Reserve policy.
We begin with an article about Chairman Bernanke’s testimony before Congress and release of minutes from the last Fed meeting, where Fed policy becomes a little clearer. Next, we summarize a piece on recent economic data that shows signs of an improving economy, despite headwinds. Then, we review the main points of an article addressing whether the level of the major indexes represents a boom or a bubble waiting to pop. Finally, we discuss positive developments for seniors in the form of higher thresholds for being subject to the Tennessee Hall Income Tax.
Ben Bernanke says bond buying could slow. Markets gyrated as it absorbed the meaning of Chairman Bernanke’s testimony to Congress on May 22 and the release of minutes the same day from the April 30-May 1 Fed meeting. “If we see continued improvement and we have confidence that is going to be sustained, then in the next few meetings, we could take a step down in our pace of purchases.” According to the Financial Times, “the remarks provide the clearest picture yet of how the Fed is likely to taper off QE3