Federal Reserve Chairman Ben Bernanke went before reporters this morning in a scheduled press conference, but neglected to insure a recovery from the recent economic collapse, much to the chagrin of Wall Street.
Bernanke did not say what the Fed would be doing in the months to come to help rebuild the American economy, and acknowledged in fact that the road to recovery has been “much less robust” than the Federal Reserve had hoped.Many on Wall Street had expected today’s scheduled press conference to announce another round of quantitative easing, which while having its own fair share of critics, would most likely stimulate markets, serving as a welcoming change to the volatility that has plagued Wall Street during recent weeks. The government also announced on Friday that the economy grew at a rate of only 1 percent last month, which while staggering, is an improvement from the 0.4 percent increase America saw during the first quarter of 2011. Bernanke responded acknowledging that "The economic healing will take a while, and there may be setbacks along the way." Karl Denninger of the Market Ticker says that quantitative easing would do little to help right now, and adding that it didn't do anything the last time either. "I don't see why the market is looking for him to do more of what didn't work," said Denninger, who adds that there is no benefit at to a third QE.The chairman remained oddly optimistic, however, adding that “the healing process should not leave major scars." Obviously Bernanke has not noticed that the number of unemploymed Americans continues to stay at a tally exceeding 400,000. Following his speech, the Dow Jones Industrial Average dropped over 200 points, but saw resurgence later in the day.