Ten Burning Questions for Ben Bernanke
I generally spend Federal Reserve Chairman Ben Bernanke's post-meeting press conference hoping one of the reporters will ask what for me are the burning questions of the day. Since they never do, and in all likelihood won't later today, I'm going to ask them myself. Here goes.
1. Chairman Bernanke, the Fed's economic projections continue to put long-run full employment at 5 percent to 6 percent. The neutral funds rate -- the rate that will keep the economy growing at its noninflationary potential in perpetuity -- is thought to be about 4 percent. The Federal Open Market Committee has pledged not to raise the funds rate at least until the unemployment rate hits 6.5 percent, and there has been talk of lowering that threshold, perhaps to take the sting out of tapering.
