What Do Markets Need to Hear From Ben Bernanke?

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July 16 (Bloomberg) -- Michael Plavnik, head of the Stirt desk at Citigroup, talks with Francine Lacqua about what markets need to hear from Federal Reserve Chairman Ben Bernanke when he testifies before Congress on Wednesday. He speaks on Bloomberg Television's "On The Move."

Message he gave last week, which is that tapering is different than tightening.

We are not going to tighten for a long time.

We will be more a accommodative than we have been historically and we even revise the evans rule, known as the .5% unemployment and two percent inflation.

Meaning we can wait for unemployment to go lower than 6.5%. was there a miscommunication over last week?

So much volatility in the markets and emerging markets, what is happening?

What is going on with the fed?

Is he clear about what he's going to do but markets are misinterpreting?

Or is he not communicating as simply as the markets want him to?

As a group, there has been a lot of communication from the fed.

In the span of an hour, we had very hawkish minutes where half of the committee wanted to and tapering by the end of the year.

One hour later, we had a very dovish earning the -- bernanke.

Have they been clear?

No.

have they made things more confusing?

Yes.

They have moved the market past the idea of tapering and tightening.

They have separated tapering as not tightening.

We will get a move on tapering because we need to end qe at some point soon.

Are you worried about the eu debt crisis?

I am not that worried about the debt crisis, but more worried about investors thinking about what the next policy steps are and that there are no more policy steps left.

We will talk more on that shortly after this break.

The head of short-term interest rate trading at citigroup stays with us.

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

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