"Money Honey" says report does Bernanke a "favor" (Reuters)

[Up2Late]

(This is kind of scary that CNBC still has this much power to move the markets! Plus, isn't it nice to know that sexism is still rampant on Wall Street?)

"Money Honey" says report does Bernanke a "favor"

Tue May 2, 2006 06:05 PM ET

By Joe Maguire

NEW YORK (Reuters) - Long a celebrity to those obsessed with financial-news broadcasting, CNBC's Maria Bartiromo may have cemented her status as the so-called "Money Honey" with a seemingly off-handed remark about a recent conversation with Fed Chairman Ben Bernanke.

Leading into a question for guest Michael Moskow, president of the Chicago Federal Reserve, Bartiromo on Monday mentioned that she had spoken with Bernanke at the White House Correspondents' Association's annual dinner on Saturday.

In what she later described as doing Bernanke a "favor," Bartiromo reported that the Fed chief had told her the media and markets had misinterpreted his recent comments about a potential pause in the central bank's 22-month cycle of interest-rate hikes.

Financial markets soon went into a tailspin. The Dow Jones industrial average's fresh six-year high disappeared; two-year Treasury notes -- the most-sensitive to speculation about monetary policy -- extended their losses, pushing the yield up 9 basis points on the day.

(more and page 2 at link)

<http://go.reuters.com/newsArticle.jhtml?type=domesticNews&storyID=12044316&src=rss/domesticNews>

[Up2Late]

1. kick n/t

:kick:

[lovuian]

2. CNBC report seen denting Bernanke's credibility

http://feeds.bignewsnetwork.com/redir.php?jid=2422baedd787393d&cat=3a8a80d6f705f8cc

WASHINGTON (Reuters) - Fledgling Federal Reserve Chairman Ben Bernanke may need to work to rebuild his credibility after off-the-cuff remarks over the weekend made it onto the airwaves on Monday, roiling financial markets.

CNBC anchor Maria Bartiromo waited until late afternoon Monday to report that Bernanke had told her at a journalists' dinner on Saturday that traders had misread his congressional testimony last week.

"Federal Reserve Chairman Bernanke told me over the weekend that the media and the markets basically got it wrong last week in speculating that the Fed is done raising interest rates," she said moments before a live interview with Chicago Fed President Michael Moskow on Monday.


"Bernanke also told me it is worrisome to him that anyone would think of him as dovish, though that feeling did permeate last week," she added
more...
Losing credibility is not good in a Federal reserve Chairman!!! Looks like Rates are going up!!!

[UpInArms]

3. more from Reuters: CNBC report seen denting Bernanke's credibility

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-02T222018Z_01_N02314461_RTRIDST_0_ECONOMY-BERNANKE-UPDATE-1.XML

excerpt:

While some did not see the comments as markedly different from his remarks on Capitol Hill, other market participants were dumbstruck that the head of the world's mightiest central bank would seemingly try to tweak his message with a brief aside at a social event, and cast it as a rookie mistake.

"First of all, the idea that the chairman of the U.S. Federal Reserve is disseminating policy via network reporters at off-hours dinner parties is absurd," said Steen Jakobsen, chief investment officer at Saxo Bank in Copenhagen.

"Frankly, I think it hurts the Fed ... and Bernanke has lost serious credibility," he added.

...more...

The bucket and shovel brigade keep digging their hole deeper and deeper. The Gang that couldn't shoot straight.

[lovuian]

4. Thank you UP IN Arms and on top of this

Bernanke is playing games when the dollar is dive bombing!!! So far he sucks!!!

[lovuian]

5. This guy is dangerous!!!

he knows exactly the game he is playing!!!

[UpInArms]

6. I agree, lovuian - he's a duplicitous plant in a Fed Chair position

Chopper Ben's Credibility

What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

(edited for spulling)

[TexasLawyer]

7. why do people try to read tea leaves

and the subtle nuances in the speeches given by the Fed Chief on interest rates? Interest rates are going up, because they have to.

[electropop]

8. Maria: The face that launched a thousand sell orders.

Maybe if I could get ahold of her scripts a few minutes in advance of air-time...

[VegasWolf]

9. Yet another fine pick from "Brain." nt

[wishlist]

10. I was surprised when media jumped gun saying interest rates would end

Bernanke warned about higher oil prices saying that could cause inflationary pressure and prevent the Fed from stopping rate hikes. So I was surprised that the news articles covering his remarks misrepresented what he said as being a definite confirmation of an end to rate hikes.