An Unsurprisingly Unsurprising Press Conference

But Bloomberg gets it. It can't be any more obvious markets want easier money. That's a pretty clear refutation of the US being in a liquidity trap. If markets believe monetary policy can work, then monetary policy can work (by reducing the demand for money).

That only leaves those who believe additional monetary stimulus will cause undesirably high inflation... But inflation expectations remain low, and prices are still below their long term trend.



In addition, whatever Bernanke means by "faster growth" isn't fast enough, and I don't expect stronger growth until the Fed takes additional actions.