Fed: Growth Was `Modest to Moderate'

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July 17 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the central bank’s asset purchases "are by no means on a preset course" as he sought to tamp down an increase in borrowing costs that threatens to slow the economic expansion. Peter Cook reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)

He says that bond buying is not a preset.

In the beige book, what stuck out to you?

Let me walk you through the beige book.

A pretty rosy outlook from this latest survey of the 12 fed restricts.

Overall economic activity continued at a modest to moderate pace.

The beige book says manufacturing increased in most districts.

Most districts noted that overall consumer spending increased and residential real estate and construction activity increased in all reporting districts.

A pretty rosy assessment of the economy.

Now, to the chairman's visit where he was a little bit more apprehensive about the u.s. economy . the stimulus might continue in what would be the semi annual testimony in front of the financial services committee.

Bernanke psyching a more dovish tone.

-- bernanke indicating a more dovish tone.

This is only if economic forecasts hold up.

We will be responding to the data.

If the data is stronger than we expect, we will move more quickly.

If it does not meet expectation that we have about where the economy is going, then we would delay that process or even potentially increase purchases for a time.

He continued to stress that tapering does not mean tightening.

He was pushed by republicans on the panel to defend the monetary policy, to defend the balance sheet he has said that the fed actions have bolstered the u.s. economy.

The overhaul of fannie mae and freddie mac by and large.

Bernanke dodged most of those questions.

There was not a huge focus on monetary policy.

A lot of it had to do with monetary regulation.

Thank you.

Our chief washington

This text has been automatically generated. It may not be 100% accurate.

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