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The US Fed's Ben Bernanke for the first time chose to focus strong word on the weak USD and its associated risks at an appearance before the International Monetary Conference in Barcelona, Spain. Usually, the Fed defers to the Treasury on currency issues, so the fact that Bernanke brought up the issue in such a clear-cut fashion shows that the Fed and the Treasury are coordinating their communication with the market and that this turn of rhetoric should be taken very seriously, even if it doesn't mean that any "real intervention" is imminent.
Bernanke said that the Fed is "attentive”. The significance of the Fed bringing up the problematic aspects of the issue at all cannot be underestimated. It is thus a kind of historical declaration… |
