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Thread: Market News

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    Market News

    Euro-Dollar Lower on Noyer Comments; Aussie Falls

    The U.S. dollar recouped some of Friday's losses versus the euro in early afternoon Asia trading on Monday after European Central Bank Governing Council member Christian Noyer attempted to jawbone down a rebound in the euro that may hamper the weak recovery in the region.

    The euro is still over-bought in effective exchange rate terms, Noyer said in an interview published in Monday's Nikkei business daily, noting that the single currency is still above the debut level of $1.17 seen in January 1999. His comments came as the single currency rose to $1.3421 this morning, the highest level since Nov. 24.

    "The euro-zone situation hasn't changed at all despite the debt relief for Ireland," said Yuichiro Harada, senior vice president of the forex division at Mizuho Corporate Bank.

    "There is no strong reason to keep buying the euro," he said.

    Noyer also defended the E85 billion financial rescue aid program by the European Union and the International Monetary Fund for the debt-laden Ireland, expressing confidence that it would contain any risk of contagion to other vulnerable eurozone peripheral states, according to the business daily.

    "With this powerful program, Irish banks will regain trust and unease among their depositors and clients will ease," Noyer was quoted as saying. "The case of Ireland is very unique and there is no other country in the region that is suffering from similar difficulties."

    The euro stood at $1.3340 at midday in Asia vs. $1.3416/19 in late New York trading Friday. The euro has risen since reaching $1.2964 on Nov. 30, the weakest level since Sept. 15, helped by the Irish rescue plan and purchases by the European Central Bank of the sovereign debt from distressed eurozone states.

    Dealers noted an option-strike that will expire today was pre-set both at $1.3350 and $1.3450.

    Dollar-yen also rebounded after hitting a three-week low on Friday, as Federal Reserve Board Chairman Ben Bernanke dismissed the risk of a double-dip recession in the U.S.

    The greenback was changing hands at Y82.93 versus Y82.57/61 in late New York on Friday, when it reached Y82.51, the lowest since Nov. 15.

    The dollar tumbled on Friday after Bernanke flagged the possibility of expanding the Fed's $600 billion debt purchase program, known as QE2.

    Bernanke did not rule out expanding the QE2 as he defended the Fed's decision, CBS Interactive reported initially on Friday, citing him as saying at an interview with CBS' "60 Minutes" which was aired in full on Sunday night.

    An expansion of the Federal Reserve's quantitative easing program beyond the scheduled $600 billion of Treasury security purchases is "certainly possible" depending on QE2's "efficacy" and on how the economy and inflation evolve, Bernanke said in the interview conducted Nov. 30.

    Bernanke reiterated his strongly felt concern about the high level of unemployment, saying it represents the "primary source of risk" for a renewed economic slowdown. Bernanke's comments came before the U.S. Labor Department reported Friday that non-farm payroll rose only 39,000 in November, well below expected, while the unemployment rate rose 0.2 percentage point to 9.8%

    "Although the Fed seems to be trying to contain the risk of a spike in yields, it is not so easy to dispel the underlying optimism for the U.S. economy," said Akio Yoshino, chief economist at Amundi Japan.

    "As some hopes for the sustained recovery in the U.S. remain intact despite the weak jobs data, it would not be a surprise if the dollar made some headway," he said.

    Yields on 10-year Treasury notes reached 3.04% on Friday, the highest since July 28, even after the disappointing November jobs data.

    Jeffrey Lacker, president of Federal Reserve Bank of Richmond, will deliver a speech later today. Lacker has previously stated his opposition to the QE2 program.

    Meantime, the Aussie fell before the Reserve Bank of Australia holds policy-setting meeting tomorrow despite general risk-on sentiment, which normally benefits such currencies as the Aussie which are tied closely to the growth.

    Reserve Bank of Australia Governor Glenn Stevens said last week the central bank judged the current level of official interest rates to be appropriate for the immediate future, supporting market expectations that official interest rates are set to remain on hold this week and into early 2011.

    The Aussie stood at $0.9866 in midday here vs. $0.9925 in late Friday, when it hit $0.9937, its best level since Nov. 22.

    The Dollar index was 0.5% higher at 79.55.

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    RBNZ Preview: Rates Unchanged; May Indicate Tightening Pause

    The Reserve Bank of New Zealand is expected to leave the official cash rate (OCR) unchanged at 3% when it meets on Thursday morning, with some economists predicting the central bank will ease off its tightening bias and indicate any further increase in the rate will be some way off.

    The monetary policy statement which accompanies the OCR decision includes an updated set of forecasts and there is a consensus among economists that the central bank will project lower growth for 2011 than it did in the last forecast three months ago.

    A number of economists have called for the central bank to drop its current tightening bias and shift to a neutral stance, as a series of recent economic data indicate the economic recovery is running at a much slower pace than anticipated and further global economic instability, especially in Europe, is having a dampening effect on business investment and hiring intentions.

    The Reserve Bank's most recent policy statement in October said monetary conditions were still stimulative and that "it remains likely that further removal of monetary policy support will be required at some stage."

    TD Securities' analyst Annette Beacher said the continuation of the tightening bias "is not helping activity or sentiment, and is keeping a firm bedrock under the New Zealand dollar."

    Moving to a neutral stance would "do least harm", she said.

    Goldman Sachs New Zealand strategist Philip Borkin said the run of local data and early signs of a possible drought affecting New Zealand's main dairy regions should also help keep the Reserve Bank "on the sidelines" at this week's meeting.

    "Stable inflation expectations and retreating pricing intentions from business surveys should provide the comfort to do this."

    But a statement with no change in tone could send the wrong message, he added.

    "Even a "status quo" message could potentially disappoint the market and risk tighter financial conditions. We are looking for a softer undertone, but for the Reserve Bank to still maintain a degree of flexibility to respond as the data progresses," he said.

    Deutsche Bank New Zealand chief economist Darren Gibbs said the Thursday statement is likely to imply a "slightly later" increase in the OCR.

    The current overnight index swap (OIS) market has priced in a 25bp OCR rise in June, says Bank of New Zealand economist Mike Jones, but his own prediction is for the Reserve Bank to begin raising the rate in March.

    "We suspect markets are still under-appreciating the degree of inflation pressure building in the economy. Nevertheless, we certainly acknowledge the risk of a delay (in further tightening) until later in the year," Jones said.

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    China Economists Talk Down Fast Yuan Rise After Mon Pol Shift

    China shouldn't allow a fast and sharp appreciation of the yuan but rather continue to pursue a gradual and modest rise, Chinese economists said in comments published on Monday following the Chinese government's official shift in its monetary policy stance.

    On Friday, Beijing formally announced a shift to a "prudent" monetary policy for next year from the previous "appropriately loose" stance that had been in place since November 2008 to combat the effects of the global financial crisis.

    "Consolidating and expanding China's achievement in fighting the international financial crisis remains an important task for us. Against this background, the Chinese yuan shouldn't appreciate sharply in short term," the official Xinhua news agency said on Monday.

    "The (monetary policy) shift is going to curb excess liquidity and inflation pressure and will provide a stable monetary environment for economic growth ... But for the yuan exchange rate, we won't see a sharp rise in the short term," Zhang Liqun, a researcher with the Development and Research Center under the State Council told Xinhua.

    China's yuan exchange rate policy since 2005 has proved to be successful and the government shouldn't change that approach, Zhang added.

    China announced a one-off 2.1% yuan revaluation in July 2005 and adopted a gradual but modest appreciation pace from then until the outbreak of international financial crisis in mid-2008. It held the yuan virtually pegged to the U.S. dollar for two years until June this year.

    The People's Bank of China resumed yuan reform on June 19 and the appreciation of the Chinese yuan against the US dollar picked up, rising by 1.7% in September, its biggest monthly rise since the 2005 revaluation.

    Separately, Guo Tianyong, a professor with Central University of Finance and Economics, also called for a gradual yuan rise in remarks published Monday.

    "The Chinese yuan has risen too fast since September and has attracted hot money inflows," Guo wrote in an article in the Economic Information Daily, a newspaper published by the Xinhua News Agency.

    "For China, the current appreciation speed is not appropriate ... A too-rapid yuan rise will hurt our foreign trade recovery. A gradual yuan appreciation is still the best choice for China," Guo said.

    Sheng Songcheng, head of the statistics department of the PBOC, wrote in comments published last Monday that China should shift to a prudent monetary policy and should stick to gradual yuan appreciation under this policy stance.

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    Juncker, Tremonti Propose Creating EU Sovereign Bond Issuer

    The European Union should create a single soverign bond issuing agency for the entire region to help calm market concerns over debt among eurozone peripheral states and lower borrowing costs, Luxembourg Prime Minister Jean-Claude Juncker and Italian Finance Minister Guilio Tremonti wrote in an opinion piece published in Monday's Financial Times.

    Given continuing market "stress" related to European sovereign debt, "Europe must formulate a strong and systemic response to the crisis, to send a clear message to global markets and European citizens of our political commitment to economic and monetary union, and the irreversibility of the euro," said Juncker, who chairs the Eurogroup of eurozone finance ministers, and Tremonti.

    They urge the creation of "E-bonds," issued by a new European Debt Agency (EDA), which would have a mandate to "gradually" issue debt up to 40% of the GDP of the EU and each member state. Over time, they envision the E-bond market reaching liquidity comparable to that of the U.S. Treasury market.

    To create a "deep and liquid" market in the near term, the EDA should be charged with issuing debt up to half of the planned new issuance of each EU member state, and up to 100% for those states whose access to debt markets is impaired, the ministers propose.

    In addition, the EDA should offer a "switch" between E-bonds and existing national bonds. "The conversion rate would be at par but the switch would be made through a discount option, where the discount is likely to be higher the more a bond is undergoing market stress," they say.

    The EDA would use profits from the conversions to reduce effective E-bond interest rates, so that "EU taxpayers, and those member states currently under attack, would not have to foot the bill."

    "Knowing in advance the evolution of such spreads, member states would have a strong incentive to reduce their deficits. E-bonds would halt the disruption of sovereign bond markets and stop negative spillovers across national markets," they wrote.

    In an effort to win over German support for the plan, Juncker and Tremonti propose that the new E-bond include a clause ensuring that private bondholders "bear the risk and responsibility for their investment decisions." The Germans have championed the idea that private bond investors must pay their share of any default or restructuring.

    Still, Germany remains opposed to creation of an EU soverign bond market, German weekly magazine Der Spiegel reported Sunday. Given that rates on E-bonds would reflect perceived risk across the entire EU, German borrowing costs could rise compared to existing benchmark Bunds.

    There are growing concerns among German government officials that after Greece and Ireland another Eurozone country could run into financial trouble even before Christmas and that the existing EU rescue funds won't be large enough, Der Spiegel said.

    Rather than creating an E-bond market, German government officials are now pondering the possibility that all Eurozone countries could guarantee the government bonds issued by each member state, the magazine claimed.

    German Finance Minister Wolfgang Schaeuble said Friday that financial markets are currently not speculating against individual Eurozone countries but are rather doubting the sustainability of the European Monetary Union as a whole.

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    EU's Juncker To Present Eurobond Proposal Monday: Press

    Eurogroup chairman Jean-Claude Juncker wants to present a proposal on Monday for a possible issuance of joint eurobonds, but the German government is still opposing it, German weekly Der Spiegel reported Sunday, without citing its sources.

    According to the magazine, Juncker advocates the creation of a European Debt Agency which would issue the eurobonds. Some 60% of the financial needs of fiscally ailing Eurozone member states would then be financed via eurobonds while the remaining 40% would have to be raised on capital markets by the concerned country itself, Der Spiegel wrote.

    Meanwhile, German government officials fear that after Greece and Ireland another Eurozone country could run into financial trouble even before Christmas, the magazine reported. Fears are growing that the existing EU rescue funds won't be large enough, Der Spiegel said.

    German government officials are now pondering the possibility that all Eurozone countries could guarantee the government bonds issued by each member state, the magazine claimed.

    German Finance Minister Wolfgang Schaeuble said Friday that financial markets are currently not speculating against individual Eurozone countries but are rather doubting the sustainability of the European Monetary Union as a whole.

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    JAPAN PRESS: ECB's Noyer Shrugs Off Credit Contagion Risk

    European Central Bank governing council member Christian Noyer defended the E85 billion financial rescue aid by the European Union and the International Monetary Fund for the debt-laden Ireland, expressing confidence in containing any risk of contagion of sovereign problems in the region, the Nikkei reported Monday.

    "With the powerful program, Irish banks will regain trust and unease among their depositors and clients will ease," Noyer was quoted as saying in an interview with the Nikkei.

    "The case of Ireland is very unique and there is no other country in the region that is suffering from similar difficulties," he said.

    Noyer said that the ECB introduced an unorthodox program to buy sovereign debt issued by member countries in a bid to help resolve the malfunction of credit markets in the region, adding that the ECB will maintain this program "at least until the end of the January-March quarter of 2011," according to the business daily.

    Noyer, who is also the Banque de France governor, ruled out the risk of a double-dip recession in the euro-zone economy.

    "The recovery may lose traction due partly to waning effects of fiscal stimulus. Still I have a reasonably bright outlook for the region, given signs of a pickup in domestic demand in some countries including Germany," Noyer said.

    On foreign exchange issues, Noyer said the euro is still over-bought in terms of effective exchange rates while that the single currency is still holding above the debut level of $1.17 seen in January 1999.

    Noyer also noted that the yen is roughly in line with appropriate levels based on the past trend and effective exchange rates, adding that "we also need to take note of the relative strength of the Japanese industry's competitiveness and deflation."

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    China Govt Economist: Rate Hikes Aim To Help Real L-T Rates

    Chinese official interest rate increases are not aimed at reversing negative real short-term interest rates but rather at bringing medium- and long-term deposit rates back into positive territory in inflation-adjusted terms, a senior government economist argued in remarks published Monday.

    "The purpose of a interest rate hike is not heavily focused on correcting a negative (real) short-term interest rate. Therefore, a rate hike decision shouldn't be based on negative (real) one-year deposit rate," said Ba Shusong, deputy head of the financial institute of the Development and Research Center under the State Council.

    Ba noted that the central bank raised interest rates several times in 2007, but the real one-year deposit rate was still negative for 21 months during late 2006 and 2008.

    "This showed that correcting a negative (real) one-year interest rate is not the final goal of a central bank rate hike ... Instead, correcting negative (real) medium- and long-term deposit rates is more useful in curbing inflation expectations," Ba said in an interview with the official People's Daily.

    The PBOC raised the one-year deposit rate by 25 basis points in October this year to 2.50%, still below the 3.0% year-on-year consumer price growth rate for the first 10 months of this year.

    But the central bank also raised the five-year deposit rate by 60 basis points to 4.20%, creating a higher positive real interest rate.

    The market widely expects the central bank to raise interest rate again in December, given that November CPI is seen rising further from October's 4.4% rate, a two-year high.

    The main argument for a rate hike is to correct negative real interest rates but not to bring down CPI growth, which is mainly a result of food price increases, which higher interest will not correct.

    Ba expects the central bank to remain cautious about hiking interest rates, instead relying mostly on continued aggressive sterilization steps and a modest appreciation of the yuan to curb inflation next year as part of the shift to a "prudent" -- ie less accommodative -- monetary policy stance.

    A source familiar with discussions at the State Council level told Market News International in November that a rate hike would come if the consumer inflation rate were to rise above long-term interest rates.

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    Spain Finmin: Won't Seek EFSF Aid; Bigger Fund Not The Issue

    Spain does not need to seek aid from the European Financial Stability Facility, and enlarging the resources available through the EFSF is not what European policymakers should be focusing on, Spain's Finance Minister Elena Salgado said in a newspaper interview published Monday.

    Rather, Salgado told France's business daily Les Echos, European officials should speak in one voice and convince the financial markets that they will do everything possible to ensure the stability of the euro.

    Asked point blank if Spain will seek financial aid from its Eurozone partners via the EFSF, Salgado replied: "No. None of our fundamentals justify it." She took pains to distance Spain both from Greece and Ireland, the two EMU countries that have so far requested aid.

    Greece, she noted, had a large public deficit "not due only to the crisis," whereas Spain had produced large budget surpluses in the years immediately before the crisis. In Ireland, the problem is in the country's troubled banking sector, Salgado added.

    In Spain, 95% of banks passed stress tests administered by the ECB, while in Ireland only 50% did. And while Ireland's banks need additional equity capital equal to 20% of Ireland's GDP, for Spanish banks the corresponding number is only 1.1% of Spain's GDP.

    Given Spain's insistence that it will not seek aid, it makes sense that it should be arguing against an increase in the size of the EFSF. Afterall, those who argue for such an increase do so because they fear Spain may be one of the market's next victims.

    "It is deceiving to think in purely quantitative terms," Salgado said. "We must now evolve towards a permanent mechanism. Markets must know that European institutions and countries will do everything for the stability of the euro."

    She added: "Injecting additional resources into the fund is not the issue of the moment. Today, it's about demonstrating clarity, determination and coordination. Europe must speak in one voice in this crisis, rather than mobilizing additional financial resources."

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    China's Hu, US' Obama Discuss Range of Topics In Phone Call

    Chinese President Hu Jintao and U.S. President Barack Obama talked on the telephone today about a wide range of issues, the official Xinhua News Agency reported Monday.

    China and the United States have broad shared interests and shoulder the important responsibility of responding to the impact of the global financial crisis, boosting the world economy as well as maintaining international peace, Hu told Obama, according to Xinhua.

    The Xinhua report was not more specific on the economic topics discussed in the call.

    China and the U.S. should cooperate to deal with the more complicated challenges facing the international community, Hu reportedly told Obama.

    The two leaders also shared their opinions of the situation on the Korean peninsula. Hu insisted peace is the first priority and Obama agreed the U.S. is willing to cooperate closely with China to maintain a safe environment in northeast Asia, Xinhua said.

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    Bernanke Says Fed May Take More Action to Curb Joblessness

    Federal Reserve Chairman Ben S. Bernanke said the economy is barely expanding at a sustainable pace and that it’s possible the Fed may expand bond purchases beyond the $600 billion announced last month to spur growth.

    “We’re not very far from the level where the economy is not self-sustaining,” Bernanke said in an interview broadcast yesterday by CBS Corp.’s “60 Minutes” program. “It’s very close to the border. It takes about 2.5 percent growth just to keep unemployment stable and that’s about what we’re getting.”

    Bernanke, in a rare appearance on a nationally broadcast news program, defended the Fed’s efforts to prop up a recovery so weak that only 39,000 jobs were created in November. The unemployment rate last month rose to 9.8 percent, the highest level since April, the Labor Department said on Dec. 3, three days after the Bernanke interview was taped. Republican lawmakers have said the Fed’s policy of “quantitative easing” may do little to help unemployment and may fuel inflation.

    “At the rate we’re going, it could be four, five years before we are back to a more normal unemployment rate” of about 5 percent to 6 percent, Bernanke said. The purchase of more bonds than planned is “certainly possible,” said Bernanke, 56. “It depends on the efficacy of the program” and the outlook for inflation and the economy.

    Bernanke said a return to a recession “doesn’t seem likely” because sectors of the economy such as housing can’t become much more depressed. Still, a long period of high unemployment could damage confidence and is “the primary source of risk that we might have another slowdown in the economy.”

    Treasuries, Dollar

    Treasuries rose, pushing yields down from a four-month high after the remarks were published, with yields on 10-year notes falling 7 basis points to 2.94 percent at 9:11 a.m. in London, according to BGCantor Market Data. The dollar advanced 0.8 percent to $1.3301 per euro.

    The Fed’s decision to undertake new bond purchases sparked a political backlash in Washington. The program, known as quantitative easing, has been criticized by officials in countries including China and Germany. Policy makers in emerging markets expressed concern it would drive down the dollar and cause a surge of capital abroad that created asset-price bubbles.

    “Bernanke is defending his decisions to a mass American audience” on the CBS program, said Sean Callow, a senior currency strategist in Sydney at Westpac Banking Corp. “He is not giving way to criticism, whether it is domestic or international,” he said, adding that “it’s another reminder that the dollar is a side effect of quantitative easing and not a top factor in the Fed’s view.”

    China Criticism

    Bernanke in the interview reiterated U.S. complaints that China’s policy of limiting gains in its exchange rate is hurting the U.S. economy.

    “Keeping the Chinese currency too low is bad for the American economy because it hurts our trade,” the chairman said in excerpts of the interview posted on the CBS News website. “It’s bad for other emerging market economies. It’s bad for China because among other things it means China can’t have its own independent monetary policy.”

    Sarah Palin, the 2008 vice-presidential candidate who has said she’s considering a run for president in 2012, wrote in a Nov. 18 letter to the Wall Street Journal that “It’s time for us to ‘refudiate’ the notion that this dangerous experiment in printing $600 billion out of thin air, with nothing to back it up, will magically fix economic problems.”

    Employment Mandate

    Asia’s policy makers would be more likely to impose “soft” capital-control measures should the U.S. expand its bond-purchase program and increase the risk of fund flows into the region, according to Goldman Sachs Group Inc.

    “Key policy makers in Asia are on edge,” Michael Buchanan, chief Asia Pacific economist at Goldman Sachs, said in a press briefing in Hong Kong today. Further quantitative easing in the U.S. “would increase the chance of soft capital controls being imposed in many countries around the region,” he said.

    Two U.S. Republicans, Tennessee Senator Bob Corker and Indiana Representative Mike Pence, last month proposed removing the Fed’s maximum employment mandate to focus the central bank on stable prices alone. Corker plans to introduce such legislation next year.

    ‘Overstated’ Fears

    Bernanke said fears of inflation are “overstated” and that keeping inflation under control isn’t a diminished priority for the Fed.

    The rate of inflation has slowed this year, with the personal consumption expenditures index, excluding food and energy, rising at a 0.9 percent annual pace in October, the slowest in 50 years. Including all items, the index increased 1.3 percent.

    Without action by the central bank, the economy might have tipped into a period of deflation, or a prolonged drop in prices, Bernanke said.

    “Because the Fed is acting, I would say the risk is pretty low” of deflation, Bernanke said. “But if the Fed did not act, then given how much inflation has come down since the beginning of the recession, I think it would be a more serious concern.”

    Bernanke said he is “100 percent” confident that, when necessary, the central bank can control inflation and reverse its accommodative monetary policy.

    Targeting Inflation

    “We’ve been very, very clear that we will not allow inflation to rise above 2 percent,” he said.

    “We could raise interest rates in 15 minutes if we have to,” he said. “So, there really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation, at the appropriate time.”

    “That time is not now,” he said.

    The Fed’s policy of purchasing Treasury securities shouldn’t be considered simply printing money, Bernanke said.

    “The amount of currency in circulation is not changing,” he said. “The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities.”

    The Fed has increased its balance sheet by expanding excess reserves at banks. The Fed reports two measures of the money supply. M1 includes all currency held by consumers and companies for spending, money held in checking accounts and travelers checks. M1 has risen 6.9 percent in the past year, compared to a 4.3 percent average increase since 2000, the Fed said last week.

    Policy ‘Trick’

    “By lowering interest rates, we hope to stimulate the economy to grow faster,” Bernanke said. “The trick is to find the appropriate moment when to begin to unwind this policy.”

    Longer-term interest rates, which had been falling since April as the economy slowed and speculation increased that the Fed would have to do more, have risen since the Fed’s Nov. 3 announcement of the bond purchases.

    The yield on the 10-year Treasury note has increased 44 basis points since Nov. 3 to 3.01 percent on Dec. 3, while the 30-year Treasury yield has risen 27 basis points to 4.31 percent. A basis point is 0.01 percentage point.

    Bernanke gave his first televised interview as Fed chief on “60 Minutes” on March 15, 2009, near the lowest point for the stock market in more than a decade. He said then that “green shoots” were beginning to appear in financial markets. On March 9 of that year, the Standard & Poor’s 500 closed at 676.53, the lowest level since 1996.

    Communication Policy

    Bernanke’s interview comes as Fed officials are undertaking their broadest review of public communications in three years. Janet Yellen, the Fed’s vice chairman, is chairing a subcommittee to ensure the public is “well informed about monetary policy issues.”

    Yesterday’s “60 Minutes” interview was taped in Columbus, Ohio, during a visit in which Bernanke joined in a panel discussion at the Ohio State University campus with business leaders, including Alan Mulally, president and chief executive officer of Ford Motor Co. The gathering was part of a series of public appearances and question-and-answer sessions by Bernanke this year.

    Bernanke appeared in a June question-and-answer session with Sam Donaldson, the ABC News journalist, in Washington. In May 2010, Bernanke toured a Philadelphia shipyard and a Tasty Baking Co. factory in a part of the city that is being redeveloped. Bernanke also answered questions from college students in Providence, Rhode Island, in October and in Jacksonville, Florida, in November.

    “This is just another way to try to get our messages out and try to talk effectively about monetary policy,” St. Louis Fed President James Bullard said in a Dec. 3 interview on C-Span television’s “Newsmakers” program broadcast yesterday.

    “Since we’re in such an unusual situation, it looks like we’re going to be here for a while, we probably need to think about ways to more effectively communicate,” Bullard said.

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