Following a script from his predecessor, new Federal Reserve chief Ben Bernanke said US economic expansion remains "on track," but offered few clues about his next steps on monetary policy.
In his first congressional appearance as head of the central bank, Bernanke on Wednesday appeared to echo comments from Alan Greenspan, who stepped down on Jan. 31 after 18 years at the helm of the Fed.
Bernanke said the Fed has come a long way in hiking rates after a long period of stimulating a weak economy, but refused to tip his hand on any rate moves.
He said any future monetary policy actions "will be increasingly dependent on incoming data." Bernanke said economic growth remained solid despite the weak 1.1 percent pace of growth in the fourth-quarter.
Some analysts said Bernanke gave subtle hints he was concerned about an overheating economy that could lead to more aggressive moves by the central bank.
The fact that Bernanke said that economic output "could overshoot its sustainable path" raised some warning flags among certain analysts.
"The only issue which surprised us a bit was the degree to which Bernanke stressed that continued strong economic growth could lead to inflationary pressures and thus might not be sustainable," said Dick Green at Briefing.com.
Still, Green said the testimony "should not be overanalyzed," and that Bernanke has not altered the market view of a quarter-point rate hike March 28 and possibly another one in May.
Still, market reaction was generally positive as Bernanke appeared to soothe nerves in the investor community. Stocks rose, as did bonds and the US dollar.
"Bernanke said nothing to surprise the markets," said Al Goldman, chief market strategist at AG Edwards. "He did indicate that interest rates may need to rise further to contain inflationary pressures, but also suggested much of the Fed's work has already been done."
The market was looking for clues about how far Bernanke would lift the federal funds rate, currently at 4.5 percent after 14 straight increases. Most analysts expect at least one additional quarter-point hike.
The government is aiming to recruit 1,096 foreign English teachers and teaching assistants this year, the Ministry of Education said yesterday. The foreign teachers would work closely with elementary and junior-high instructors to create and teach courses, ministry official Tsai Yi-ching (蔡宜靜) said. Together, they would create an immersive language environment, helping to motivate students while enhancing the skills of local teachers, she said. The ministry has since 2021 been recruiting foreign teachers through the Taiwan Foreign English Teacher Program, which offers placement, salary, housing and other benefits to eligible foreign teachers. Two centers serving northern and southern Taiwan assist in recruiting and training
WIDE NET: Health officials said they are considering all possibilities, such as bongkrekic acid, while the city mayor said they have not ruled out the possibility of a malicious act of poisoning Two people who dined at a restaurant in Taipei’s Far Eastern Department Store Xinyi A13 last week have died, while four are in intensive care, the Taipei Department of Health said yesterday. All of the outlets of Malaysian vegetarian restaurant franchise Polam Kopitiam have been ordered to close pending an investigation after 11 people became ill due to suspected food poisoning, city officials told a news conference in Taipei. The first fatality, a 39-year-old man who ate at the restaurant on Friday last week, died of kidney failure two days later at the city’s Mackay Memorial Hospital. A 66-year-old man who dined
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