Ian Shepherdson Chairman Quotations

There is no clear steer on policy in this speech; analysts with different views will read it in different ways.  But we think the Fed chairman knows recovery is here; he just wants to be a bit cautious -- and in both directions, which means no more easing,

The new Fed Chairman clearly expects to have to raise rates a bit further, but the extent of the tightening is dependent on the relative performance of the labor and housing markets.

The Fed chairman is not habitually in the business of delivering shocks to the markets unless the circumstances are especially dire. That is certainly a fair description of the situation in the states hit by Katrina, but it does not apply to the rest of the economy.

The chairman will likely tell the House Budget Committee that conditions are set for recovery.