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Ben Bernanke faces questions from Congress on economy – US politics live Ben Bernanke won't commit to fiurther Fed stimulus – US politics live
(40 minutes later)
5pm: And finally, a cautionary note:
Everyone paying attention to Romeny "surges" in spring summer polls: At this time in 1988, Dukakis was leading by double digits.
Wasn't Michael Dukakis a governor of Massachusetts too? Spooky.
4.36pm: An urgent email from Obama campaign manager Jim Messina hits the inboxes of supporters:
For the first time in this campaign, we got beat in fundraising.
The Romney campaign and the Republican Party raised more than $76m last month, compared to our $60m.
It's a fundraising pitch. Messina continues:
We don't have the special-interest and high-dollar donor advantage that Romney has. Barack Obama has you, and we are bound and determined to fight back on behalf of a country where everyone gets a fair shot and a fair shake.
From the beginning we've built this campaign together, from the bottom up. More people giving a little bit is the only way to compete with a few people giving a lot.
So let's fight like hell and win this thing.
4pm: Another swing-state poll, this time from Virginia and showing Barack Obama leading Mitt Romney:4pm: Another swing-state poll, this time from Virginia and showing Barack Obama leading Mitt Romney:
In the first survey since he clinched the GOP nomination, Governor Mitt Romney now trails President Barack Obama 47% - 42% in Virginia, a lead that would not be affected if [Virginia] Governor Bob McDonnell were the Republican running mate, according to a Quinnipiac University poll released today.In the first survey since he clinched the GOP nomination, Governor Mitt Romney now trails President Barack Obama 47% - 42% in Virginia, a lead that would not be affected if [Virginia] Governor Bob McDonnell were the Republican running mate, according to a Quinnipiac University poll released today.
Today's results compare to a 50% - 42% Obama lead in a March 20 survey by the independent Quinnipiac University, conducted when former House Speaker Newt Gingrich, former Pennsylvania Senator Rick Santorum and US Representative Ron Paul were still in the race for the Republican nomination.Today's results compare to a 50% - 42% Obama lead in a March 20 survey by the independent Quinnipiac University, conducted when former House Speaker Newt Gingrich, former Pennsylvania Senator Rick Santorum and US Representative Ron Paul were still in the race for the Republican nomination.
3.26pm: And in other news: everyone still hates George Bush:3.26pm: And in other news: everyone still hates George Bush:
According to the poll, released Thursday morning, 43% of people questioned had a favorable opinion of Bush, with 54% saying they had an unfavorable view of the former president. Bush's 43% favorable rating is the same as it was in 2010 in CNN polling, but is up from his mid-30's favorable rating during 2009, his first year out of the White House.According to the poll, released Thursday morning, 43% of people questioned had a favorable opinion of Bush, with 54% saying they had an unfavorable view of the former president. Bush's 43% favorable rating is the same as it was in 2010 in CNN polling, but is up from his mid-30's favorable rating during 2009, his first year out of the White House.
Jimmy Carter on the other hand is "viewed favorably by 54% of the public, with just three in ten seeing him in a negative light."Jimmy Carter on the other hand is "viewed favorably by 54% of the public, with just three in ten seeing him in a negative light."
2.52pm: The Guardian's Dominic Rushe adds his coverage of Ben Bernanke's testimony to Congress this morning:2.52pm: The Guardian's Dominic Rushe adds his coverage of Ben Bernanke's testimony to Congress this morning:
Federal Reserve chairman Ben Bernanke on Thursday stopped short of signalling any new action to help the fragile US economy, saying the recovery was continuing but warning of potential pitfalls ahead.Federal Reserve chairman Ben Bernanke on Thursday stopped short of signalling any new action to help the fragile US economy, saying the recovery was continuing but warning of potential pitfalls ahead.
"Economic growth appears poised to continue at a moderate pace of over coming quarters," Bernanke told the congressional joint economic committee. He said the Fed "remains prepared to take action as needed to protect the US financial system and economy.""Economic growth appears poised to continue at a moderate pace of over coming quarters," Bernanke told the congressional joint economic committee. He said the Fed "remains prepared to take action as needed to protect the US financial system and economy."
There's a new rallying cry for America's splenetic economics bloggers:There's a new rallying cry for America's splenetic economics bloggers:
What do we want? Economic growth poised to continue at a moderate pace! When do we want it? Over the coming quarters!What do we want? Economic growth poised to continue at a moderate pace! When do we want it? Over the coming quarters!
2.31pm: Alex Pareene of Salon has an urgent plea to political reporters:2.31pm: Alex Pareene of Salon has an urgent plea to political reporters:
Let's all agree to just not pretend the president made an "oral sex joke" at his gay fundraiser last night, because that's stupid. It's stupid, and most of the people with jobs as political reporters are at least literate, and understand that this thing did not happen. So don't repeat it, or even write that "some say" they thought it maybe happened. This would've been fodder for one 200-word Wonkette post back in 2006, maybe.Let's all agree to just not pretend the president made an "oral sex joke" at his gay fundraiser last night, because that's stupid. It's stupid, and most of the people with jobs as political reporters are at least literate, and understand that this thing did not happen. So don't repeat it, or even write that "some say" they thought it maybe happened. This would've been fodder for one 200-word Wonkette post back in 2006, maybe.
That's telling you, BuzzFeed Politics and Politico. And also this:That's telling you, BuzzFeed Politics and Politico. And also this:
And let's also agree to stop just adding question marks to headlines when the headline without a question mark is not supported by the content of the story, maybe?And let's also agree to stop just adding question marks to headlines when the headline without a question mark is not supported by the content of the story, maybe?
2.16pm: Obama and Romney are neck and neck in Colorado, according to Rasmussen:2.16pm: Obama and Romney are neck and neck in Colorado, according to Rasmussen:
A new statewide telephone survey of Likely Voters shows both the president and his likely Republican challenger receiving 45% support in the Centennial State. Six percent (6%) prefer some other candidate in the race, and five percent (5%) are undecided.A new statewide telephone survey of Likely Voters shows both the president and his likely Republican challenger receiving 45% support in the Centennial State. Six percent (6%) prefer some other candidate in the race, and five percent (5%) are undecided.
1.45pm: Why not take a break for an hour or seven and read this Nate Silver presidential election forecast model for the New York Times.1.45pm: Why not take a break for an hour or seven and read this Nate Silver presidential election forecast model for the New York Times.
Or you could just read this bit:Or you could just read this bit:
Mr Obama remains slightly ahead of Mr Romney in most national polls, and he has had a somewhat clearer advantage in polling conducted at the state level. Mr Obama would be about 80% likely to win an election held today, according to the model.Mr Obama remains slightly ahead of Mr Romney in most national polls, and he has had a somewhat clearer advantage in polling conducted at the state level. Mr Obama would be about 80% likely to win an election held today, according to the model.
However, the outlook for the November 6 election is much less certain, with Mr Obama having winning odds of just over 60%.However, the outlook for the November 6 election is much less certain, with Mr Obama having winning odds of just over 60%.
1.31pm: In the comments, reader NuageNoir runs through the pros and cons of how the Supreme Court resolves the Obama administration's signature healthcare law:1.31pm: In the comments, reader NuageNoir runs through the pros and cons of how the Supreme Court resolves the Obama administration's signature healthcare law:
Scylla: The Court upholds the law. Obama has to start talking about it again as he praises the decision and the law itself. Americans are reminded they're stuck with a law they despise, loathe, abominate, etc. The Republican base is put into a frenzy. The fundraising spigot opens up even more for them. Democrats in red states who are trying to run away from Obama – McCaskill, Nelson, Tester, Manchin, Kerrey – are suddenly forced to answer whether they will support repeal of the mandate, modification of the law, etc, or will work to keep it intact.Scylla: The Court upholds the law. Obama has to start talking about it again as he praises the decision and the law itself. Americans are reminded they're stuck with a law they despise, loathe, abominate, etc. The Republican base is put into a frenzy. The fundraising spigot opens up even more for them. Democrats in red states who are trying to run away from Obama – McCaskill, Nelson, Tester, Manchin, Kerrey – are suddenly forced to answer whether they will support repeal of the mandate, modification of the law, etc, or will work to keep it intact.
Charybdis: The Court overturns part or all of Obamacare. Obama's signature legislative achievement is perhaps left in ruins. He has to defend putting Nancy Pelosi in charge of his agenda to push a law through Congress that Americans hated and didn't want, all while the economy was in the worst shape in seven decades. Suddenly, if the mandate is what brings the whole thing do, he has to explain ad nauseam why he flip-flopped on it, since he was against it in the campaign. Worst of all, it will shatter his pretensions as a constitutional law professor. If he knows so much about the Constitution, why did he opt for legislation that was so blatantly unconstitutional? Maybe he's not such an ace after all. And, of course, the Republican base will be in a frenzy to finish off the wounded animal: 'We got Obamacare. Now, let's finish the job!'Charybdis: The Court overturns part or all of Obamacare. Obama's signature legislative achievement is perhaps left in ruins. He has to defend putting Nancy Pelosi in charge of his agenda to push a law through Congress that Americans hated and didn't want, all while the economy was in the worst shape in seven decades. Suddenly, if the mandate is what brings the whole thing do, he has to explain ad nauseam why he flip-flopped on it, since he was against it in the campaign. Worst of all, it will shatter his pretensions as a constitutional law professor. If he knows so much about the Constitution, why did he opt for legislation that was so blatantly unconstitutional? Maybe he's not such an ace after all. And, of course, the Republican base will be in a frenzy to finish off the wounded animal: 'We got Obamacare. Now, let's finish the job!'
This is all plausible. I would say that a Supreme Court overturning would at least shoot a Republican fox and so take away one of the party's biggest motivations for mobilising its supporters. It would also allow Obama to shrug it off as it being out of his hands and to blame a politicised Supreme Court (since the law will, we assume, be shot down by five GOP appointees). So it may well be the least-worst option.This is all plausible. I would say that a Supreme Court overturning would at least shoot a Republican fox and so take away one of the party's biggest motivations for mobilising its supporters. It would also allow Obama to shrug it off as it being out of his hands and to blame a politicised Supreme Court (since the law will, we assume, be shot down by five GOP appointees). So it may well be the least-worst option.
1.20pm: Rick Perry, where was this joyous spirit of optimism in the Republican presidential primaries?1.20pm: Rick Perry, where was this joyous spirit of optimism in the Republican presidential primaries?
Via Nico Hines of The Times, this is Rick Perry's video introduction to the 2012 Texas state Republican convention. The best bit is after a minute in where Perry shouts "Texas!" repeatedly. That might not have worked so well in New Hampshire.Via Nico Hines of The Times, this is Rick Perry's video introduction to the 2012 Texas state Republican convention. The best bit is after a minute in where Perry shouts "Texas!" repeatedly. That might not have worked so well in New Hampshire.
1.05pm: Ben Bernanke obviously did a great job in his testimony today if he managed to leave everyone none the wiser over what he really thinks.1.05pm: Ben Bernanke obviously did a great job in his testimony today if he managed to leave everyone none the wiser over what he really thinks.
My excellent colleague Dominic Rushe passes on these dueling interpretations.My excellent colleague Dominic Rushe passes on these dueling interpretations.
The Wall Street Journal:The Wall Street Journal:
Bernanke Cites Risks, but Doesn't Signal ActionBernanke Cites Risks, but Doesn't Signal Action
Federal Reserve Chairman Ben Bernanke cited significant risks to the US economic recovery but stopped short of signaling Fed action to combat them during testimony on Capitol Hill Thursday.Federal Reserve Chairman Ben Bernanke cited significant risks to the US economic recovery but stopped short of signaling Fed action to combat them during testimony on Capitol Hill Thursday.
The New York Times:The New York Times:
Citing Growth, Fed Chief Gives No Hints of New StimulusCiting Growth, Fed Chief Gives No Hints of New Stimulus
In remarks to Congress on Thursday, the Federal Reserve chairman, Ben Bernanke, said he remains relatively optimistic about the domestic economy.In remarks to Congress on Thursday, the Federal Reserve chairman, Ben Bernanke, said he remains relatively optimistic about the domestic economy.
So what is the correct interpretation? As always it's that of the Financial Times's Robin Harding:So what is the correct interpretation? As always it's that of the Financial Times's Robin Harding:
Bernanke cautious about further actionBernanke cautious about further action
Federal Reserve chairman Ben Bernanke said the European crisis poses "significant risks" to the US economy and the Fed would be "prepared to take action as needed" if conditions were to worsen.Federal Reserve chairman Ben Bernanke said the European crisis poses "significant risks" to the US economy and the Fed would be "prepared to take action as needed" if conditions were to worsen.
12.45pm: In the light of Wisconsin's recall election, reader Bloopie1 passes on this article from the New York Times that details the public mood for cutting state pensions even in Democratic strongholds:12.45pm: In the light of Wisconsin's recall election, reader Bloopie1 passes on this article from the New York Times that details the public mood for cutting state pensions even in Democratic strongholds:
Residents of San Diego and San Jose voted overwhelmingly to cut the pension benefits they give city workers. And they did so in a way governments traditionally avoid: moving to cut not just the benefits of future hires, but also those of current city workers, whose pensions generally have much stronger legal protections than those of private-sector workers.Residents of San Diego and San Jose voted overwhelmingly to cut the pension benefits they give city workers. And they did so in a way governments traditionally avoid: moving to cut not just the benefits of future hires, but also those of current city workers, whose pensions generally have much stronger legal protections than those of private-sector workers.
Unions in both cities vowed to block the cuts in court, but the ease with which the measures passed is expected to embolden other financially strained cities and states to follow their lead.Unions in both cities vowed to block the cuts in court, but the ease with which the measures passed is expected to embolden other financially strained cities and states to follow their lead.
It is not just Republicans seeking savings. Mayor Rahm Emanuel of Chicago, a Democrat, has been seeking to suspend the annual automatic cost-of-living adjustments for retirees.It is not just Republicans seeking savings. Mayor Rahm Emanuel of Chicago, a Democrat, has been seeking to suspend the annual automatic cost-of-living adjustments for retirees.
12.29pm: Speaking of polls – a new post-recall election poll of Wisconsin finds Obama leading Romney by 48% to 43% with 9% of voters undecided. That broadly agrees with the final exit polls on Tuesday night.12.29pm: Speaking of polls – a new post-recall election poll of Wisconsin finds Obama leading Romney by 48% to 43% with 9% of voters undecided. That broadly agrees with the final exit polls on Tuesday night.
12.16pm: Now that fairly flat Bernanke testimony is out of the way – as the Fed chairman did a good job of playing with a dead bat, as they say in cricket (less exciting than it sounds) – normal political coverage is resumed.12.16pm: Now that fairly flat Bernanke testimony is out of the way – as the Fed chairman did a good job of playing with a dead bat, as they say in cricket (less exciting than it sounds) – normal political coverage is resumed.
And there's more bad news for Barack Obama from a new poll in the usually safe state of Michigan:And there's more bad news for Barack Obama from a new poll in the usually safe state of Michigan:
President Barack Obama's popularity in Michigan has slipped in recent months, leaving him in a dead heat with Republican challenger Mitt Romney, according to a new poll of state voters by Epic-MRA of Lansing.President Barack Obama's popularity in Michigan has slipped in recent months, leaving him in a dead heat with Republican challenger Mitt Romney, according to a new poll of state voters by Epic-MRA of Lansing.
The poll, released this morning to the Free Press and four TV stations, shows Romney leading Obama 46%-45%, a reversal from the last Epic poll in April which showed Obama ahead 47%-43%.The poll, released this morning to the Free Press and four TV stations, shows Romney leading Obama 46%-45%, a reversal from the last Epic poll in April which showed Obama ahead 47%-43%.
The reason? "Epic co-founder John Cavanagh said the softening in support for Obama is likely related to a robust TV advertising campaign by pro-Romney pacs which have been critical of his handling of the economy."The reason? "Epic co-founder John Cavanagh said the softening in support for Obama is likely related to a robust TV advertising campaign by pro-Romney pacs which have been critical of his handling of the economy."
11.57am: The Guardian's Dominic Rushe in New York has his elbow on the market's pulse:11.57am: The Guardian's Dominic Rushe in New York has his elbow on the market's pulse:
The Dow is now up 92.94 and Ben has stopped speaking. It was up 100 when he started so not much movement really. The Wall Street Journal is splashing its website with "Bernanke Comments Trim US Stocks' Sails" which seems a bit of a stretch but who knows, maybe they'll be right by the end of the day.The Dow is now up 92.94 and Ben has stopped speaking. It was up 100 when he started so not much movement really. The Wall Street Journal is splashing its website with "Bernanke Comments Trim US Stocks' Sails" which seems a bit of a stretch but who knows, maybe they'll be right by the end of the day.
Makes a change from the usual "Stocks move sideways in thin trading".Makes a change from the usual "Stocks move sideways in thin trading".
11.52am: And that's it – Bernanke's testimony is over and the market seems to have perked up slightly, since the Fed chairman stayed neutral on the subject of further policy action.11.52am: And that's it – Bernanke's testimony is over and the market seems to have perked up slightly, since the Fed chairman stayed neutral on the subject of further policy action.
On CNBC, Steve Liesman draws everyone's attention to the first footnote in Bernanke's written testimony, which suggests the Fed may be slightly sceptical about the validity of the weak job creation numbers last month:On CNBC, Steve Liesman draws everyone's attention to the first footnote in Bernanke's written testimony, which suggests the Fed may be slightly sceptical about the validity of the weak job creation numbers last month:
In particular, the unusually warm weather this past winter may have brought forward some hiring in sectors such as construction where activity normally is subdued during the coldest months; thus, some of the slower pace of job gains this spring may have represented a payback for that earlier hiring. In addition, the estimated seasonal factors for some economic indicators may have been influenced by the timing of the steepest part of the decline in activity during the 2008-09 winter months; if so, the seasonal adjustment process may have resulted in an overstatement of economic activity this past winter and the understatement of activity in other months.In particular, the unusually warm weather this past winter may have brought forward some hiring in sectors such as construction where activity normally is subdued during the coldest months; thus, some of the slower pace of job gains this spring may have represented a payback for that earlier hiring. In addition, the estimated seasonal factors for some economic indicators may have been influenced by the timing of the steepest part of the decline in activity during the 2008-09 winter months; if so, the seasonal adjustment process may have resulted in an overstatement of economic activity this past winter and the understatement of activity in other months.
11.48am: On the path for interest rates, Ben Bernanke says he expects they will "normalize over time" but isn't saying anything about timing other than to repeat the FOMC's 2014 date.11.48am: On the path for interest rates, Ben Bernanke says he expects they will "normalize over time" but isn't saying anything about timing other than to repeat the FOMC's 2014 date.
11.47am: Bill Gross of Pimco:11.47am: Bill Gross of Pimco:
Gross: Bernanke/ Yellen tagteam opens door for more QE.60/40 probability.Gross: Bernanke/ Yellen tagteam opens door for more QE.60/40 probability.
Not sure you need a tag team to open a door. Mixed metaphortastic.Not sure you need a tag team to open a door. Mixed metaphortastic.
11.42am: If you had "Volcker rule" in the Bernanke buzzword drinking game, then you are late for your AA meeting.11.42am: If you had "Volcker rule" in the Bernanke buzzword drinking game, then you are late for your AA meeting.
As it happens, Bernanke says that the Volcker rule would have given the Fed more information on the situation at JP Morgan over its recent multiple billion dollar losses.As it happens, Bernanke says that the Volcker rule would have given the Fed more information on the situation at JP Morgan over its recent multiple billion dollar losses.
11.35am: What are the key lessons we can learn from Europe, wonders Democratic congressperson Talking McPoints.11.35am: What are the key lessons we can learn from Europe, wonders Democratic congressperson Talking McPoints.
"There are some important differences," says Bernanke, such as that single currency lack of fiscal union thing."There are some important differences," says Bernanke, such as that single currency lack of fiscal union thing.
11.30am: Via my colleague Dominc Rushe in New York: the early reviews of Ben Bernanke's performance are in and they are all a bit flat. "There's obviously some disappointment that Ben hasn't hinted at more imminent action," says Dominic.11.30am: Via my colleague Dominc Rushe in New York: the early reviews of Ben Bernanke's performance are in and they are all a bit flat. "There's obviously some disappointment that Ben hasn't hinted at more imminent action," says Dominic.
David Semmens, senior US economist, Standard Chartered:David Semmens, senior US economist, Standard Chartered:
Disappointing some in the market FRB Chairman Bernanke stops well short of signaling that QE3 is already a done deal at the June 20 meeting.Disappointing some in the market FRB Chairman Bernanke stops well short of signaling that QE3 is already a done deal at the June 20 meeting.
Michael Moran, chief economist, Daiwa Securities:Michael Moran, chief economist, Daiwa Securities:
Bernanke didn't reveal anything new in his prepared remarks. He was general and vague about what the Fed might do with monetary policy. He reiterated the Fed was willing to do more, if needed, but offered no clues as to whether additional support was needed at this time.Bernanke didn't reveal anything new in his prepared remarks. He was general and vague about what the Fed might do with monetary policy. He reiterated the Fed was willing to do more, if needed, but offered no clues as to whether additional support was needed at this time.
Tom Porcelli, chief US economist, RBC Capital Markets:Tom Porcelli, chief US economist, RBC Capital Markets:
The headlines from Bernanke are fairly bland, with the meat of his discussion to come from the Q&A. People were maybe expecting something more explicit in his speech, but any details will come from the Q&A.The headlines from Bernanke are fairly bland, with the meat of his discussion to come from the Q&A. People were maybe expecting something more explicit in his speech, but any details will come from the Q&A.
11.20am: "Do you sleep well at night?" asks a Republican committee member. No, really. "No, I walk the streets fighting crime," replies Bernanke. He doesn't really. "I generally sleep pretty well but I have a lot to do during the day and I need to be well rested," is what he actually said.11.20am: "Do you sleep well at night?" asks a Republican committee member. No, really. "No, I walk the streets fighting crime," replies Bernanke. He doesn't really. "I generally sleep pretty well but I have a lot to do during the day and I need to be well rested," is what he actually said.
11.15am: Senator Bernie Sanders of Vermont wants Bernanke to endorse his legislation that strips the guaranteed seats for bankers on Federal Reserve regional boards.11.15am: Senator Bernie Sanders of Vermont wants Bernanke to endorse his legislation that strips the guaranteed seats for bankers on Federal Reserve regional boards.
In particular Sanders has a go at JP Morgan's Jamie Dimon and his seat on the New York Fed. Like a "fox guarding the hen house," Sanders grumbles.In particular Sanders has a go at JP Morgan's Jamie Dimon and his seat on the New York Fed. Like a "fox guarding the hen house," Sanders grumbles.
Bernanke more open to Sanders' suggestion of throwing bankers off Fed boards than I would have thoughtBernanke more open to Sanders' suggestion of throwing bankers off Fed boards than I would have thought
Bernanke says that it's all up to Congress but says nothing to defend the status quo regarding the foxes.Bernanke says that it's all up to Congress but says nothing to defend the status quo regarding the foxes.
11.05am: Now the Tea Party godfather, Senator Jim DeMint, is speaking, and coming out with some bizarre yet standard Tea Party talking points.11.05am: Now the Tea Party godfather, Senator Jim DeMint, is speaking, and coming out with some bizarre yet standard Tea Party talking points.
"I'm sure you have a totally different take on that," says DeMint to Bernanke after reeling off some off-beam stuff about the recession being caused by regulation (it's hard to tell) and, er, low interest rates. Or something."I'm sure you have a totally different take on that," says DeMint to Bernanke after reeling off some off-beam stuff about the recession being caused by regulation (it's hard to tell) and, er, low interest rates. Or something.
"I would question whether or not low interest rates are enabling fiscal deficits," responds Ben Bernanke, pointing out that the deficit is large no matter what the level of interest rates."I would question whether or not low interest rates are enabling fiscal deficits," responds Ben Bernanke, pointing out that the deficit is large no matter what the level of interest rates.
DeMint is just grandstanding, although he does ask a semi-sensible question about Bernanke's contradiction between wanting some fiscal stimulus and worrying about debt levels. Bernanke patiently reminds him not to confuse short term and long term problems and their solutions.DeMint is just grandstanding, although he does ask a semi-sensible question about Bernanke's contradiction between wanting some fiscal stimulus and worrying about debt levels. Bernanke patiently reminds him not to confuse short term and long term problems and their solutions.
10.59am: In case you were wondering:10.59am: In case you were wondering:
US is not Greece: BernankeUS is not Greece: Bernanke
Not that the Republicans will take any notice.Not that the Republicans will take any notice.
10.53am: Lots of talk about the housing market, which Ben Bernanke has some intriguing views upon, as my colleague Dominic Rushe notes.10.53am: Lots of talk about the housing market, which Ben Bernanke has some intriguing views upon, as my colleague Dominic Rushe notes.
It's interesting that Bernanke thinks the housing market "looks to be stabilising". The still terrible housing market has been a huge drag on this recovery and one that for some reason politicians don't seem to keen to talk about that often.It's interesting that Bernanke thinks the housing market "looks to be stabilising". The still terrible housing market has been a huge drag on this recovery and one that for some reason politicians don't seem to keen to talk about that often.
The last Case-Shiller survey of the US housing market was depressing stuff. All three of the analyst's measures were at new post-crisis lows at the end of the first quarter.The last Case-Shiller survey of the US housing market was depressing stuff. All three of the analyst's measures were at new post-crisis lows at the end of the first quarter.
Home prices in Atlanta, Chicago, Las Vegas, New York and Portland all reached new lows in March. You can read about it here.Home prices in Atlanta, Chicago, Las Vegas, New York and Portland all reached new lows in March. You can read about it here.
Case-Shiller said a "floor" may have been reached, Ben clearly thinks that may be the case too.Case-Shiller said a "floor" may have been reached, Ben clearly thinks that may be the case too.
In the meantime it's also worth pulling out this noteworthy quote from Bernanke's earlier prepared remarks:In the meantime it's also worth pulling out this noteworthy quote from Bernanke's earlier prepared remarks:
A severe tightening of fiscal policy at the beginning of next year that is built into current law – the so-called fiscal cliff – would, if allowed to occur, pose a significant threat to the recovery.A severe tightening of fiscal policy at the beginning of next year that is built into current law – the so-called fiscal cliff – would, if allowed to occur, pose a significant threat to the recovery.
That's some tough talk right there. he's referring to the automatic cuts built into the budgetary suicide-pact that Congress agreed on.That's some tough talk right there. he's referring to the automatic cuts built into the budgetary suicide-pact that Congress agreed on.
Now a really long and possibly irrelevant question about interest rate-swaps.Now a really long and possibly irrelevant question about interest rate-swaps.
If you had "Basle 3" in the Bernanke buzzword drinking game this morning, then you are possibly an alcoholic.If you had "Basle 3" in the Bernanke buzzword drinking game this morning, then you are possibly an alcoholic.
10.46am: This just in: the Romney campaign and the Republican National Committee announce that they jointly raised $77m in May, a big lead in the money stakes over the $60m that Obama and the DNC raised in the same period.10.46am: This just in: the Romney campaign and the Republican National Committee announce that they jointly raised $77m in May, a big lead in the money stakes over the $60m that Obama and the DNC raised in the same period.
The Romney campaign and RNC also have $107m cash on hand.The Romney campaign and RNC also have $107m cash on hand.
10.43am: The stock market doesn't like Chairman Bernanke's refusal to hint at further policy action, with the indices all ticking down.10.43am: The stock market doesn't like Chairman Bernanke's refusal to hint at further policy action, with the indices all ticking down.
Oh and thanks for taking an ad break right in the middle there Bloomberg TV and CBNC.Oh and thanks for taking an ad break right in the middle there Bloomberg TV and CBNC.
10.34am: In response to Bernanke's plea for Congress to "take some of the burden", Kevin Brady – the vice chairman of the committee – confesses that he wants Bernanke to publicly repudiate any further quantitative easing – to jolt Congress into action.10.34am: In response to Bernanke's plea for Congress to "take some of the burden", Kevin Brady – the vice chairman of the committee – confesses that he wants Bernanke to publicly repudiate any further quantitative easing – to jolt Congress into action.
Brady's a Republican from Texas, so let's assume he isn't a raging Keynesian.Brady's a Republican from Texas, so let's assume he isn't a raging Keynesian.
10.31am: Asked in more detail about what the Fed could do to achieve further stimulus. Ben Bernanke replies, eventually:10.31am: Asked in more detail about what the Fed could do to achieve further stimulus. Ben Bernanke replies, eventually:
I recognise that rates are quite low so that is clearly a consideration. We do have tools that do let us have further accomodation in the economy and do offer some support.I recognise that rates are quite low so that is clearly a consideration. We do have tools that do let us have further accomodation in the economy and do offer some support.
"Monetary policy is not a panacea," Bernanke goes on, and remarks that "it would be much better" to have broad based policy – meaning that Congress should get off it's ass. That's not quite how Bernanke puts it howevere: "I'd be much more comfortable if Congress would take some of the burden off us.""Monetary policy is not a panacea," Bernanke goes on, and remarks that "it would be much better" to have broad based policy – meaning that Congress should get off it's ass. That's not quite how Bernanke puts it howevere: "I'd be much more comfortable if Congress would take some of the burden off us."
10.27am: Question time for Ben Bernanke, and Senator Joe Lieberman unloads all the big questions straight off the bat: China's interest rate move, the ECB's lack of action, and what is the Fed going to do about the economy in the wake of the dismal employment figures.10.27am: Question time for Ben Bernanke, and Senator Joe Lieberman unloads all the big questions straight off the bat: China's interest rate move, the ECB's lack of action, and what is the Fed going to do about the economy in the wake of the dismal employment figures.
Is that all?Is that all?
Bernanke answers directly – to a degree – on the Fed's next action, and offers a small hint that something may well be done at the FOMC's next meeting towards the end of this month. But he says that changes in short-term interest rates aren't an option (given that they are effectively zero).Bernanke answers directly – to a degree – on the Fed's next action, and offers a small hint that something may well be done at the FOMC's next meeting towards the end of this month. But he says that changes in short-term interest rates aren't an option (given that they are effectively zero).
10.22am: Dominc Rushe gives his thoughts on recent comments by Bernanke's deputy, Janet Yellen:10.22am: Dominc Rushe gives his thoughts on recent comments by Bernanke's deputy, Janet Yellen:
Yellen warned that "headwinds" - the Fed's most overused phrase these days - were holding back the US recovery, including the Euro woes. "I am convinced that scope remains for the FOMC (The Fed's action committee) to provide further policy accommodation either through its forward guidance or through additional balance-sheet actions," she said.Yellen warned that "headwinds" - the Fed's most overused phrase these days - were holding back the US recovery, including the Euro woes. "I am convinced that scope remains for the FOMC (The Fed's action committee) to provide further policy accommodation either through its forward guidance or through additional balance-sheet actions," she said.
Her comments add weight to a Wall Street Journal article earlier this week that said the Fed was considering further action to prop up the US's fragile recovery.Her comments add weight to a Wall Street Journal article earlier this week that said the Fed was considering further action to prop up the US's fragile recovery.
10.18am: Ben Bernanake's a little slow to get started, but we have his prepared testimony – the full text is here.10.18am: Ben Bernanake's a little slow to get started, but we have his prepared testimony – the full text is here.
One key quote that suggests further monetary easing isn't about to be launched in the absence of something dramatic:One key quote that suggests further monetary easing isn't about to be launched in the absence of something dramatic:
The situation in Europe poses significant risks to the US financial system and economy and must be monitored closely. As always, the Federal Reserve remains prepared to take action as needed to protect the US financial system and economy in the event that financial stresses escalate.The situation in Europe poses significant risks to the US financial system and economy and must be monitored closely. As always, the Federal Reserve remains prepared to take action as needed to protect the US financial system and economy in the event that financial stresses escalate.
Stating the bleeding obvious there – but no bones for the teenage scribblers who have been frothing at the mouth in recent weeks about the Fed's lack of action.Stating the bleeding obvious there – but no bones for the teenage scribblers who have been frothing at the mouth in recent weeks about the Fed's lack of action.
Bernanke delivered a warning for his audience to act more aggressively on fiscal responsibility:Bernanke delivered a warning for his audience to act more aggressively on fiscal responsibility:
At best, rapidly rising levels of debt will lead to reduced rates of capital formation, slower economic growth, and increased foreign indebtedness. At worst, they will provoke a fiscal crisis that could have severe consequences for the economy.At best, rapidly rising levels of debt will lead to reduced rates of capital formation, slower economic growth, and increased foreign indebtedness. At worst, they will provoke a fiscal crisis that could have severe consequences for the economy.
10am: The Guardian's Dominc Rushe sets the scene for Ben Bernanke's testimony to Congress this morning:10am: The Guardian's Dominc Rushe sets the scene for Ben Bernanke's testimony to Congress this morning:
Bernanke is speaking after a couple of good days on the US stock exchanges. The Dow Jones industrial average ended up 286.84 points, or 2.4%, at 12414.79 yesterday – it's second up day in a row adding to the largest two-day
points and percentage gain since December 21, 2011.		Bernanke is speaking after a couple of good days on the US stock exchanges. The Dow Jones industrial average ended up 286.84 points, or 2.4%, at 12414.79 yesterday – it's second up day in a row adding to the largest two-day
points and percentage gain since December 21, 2011.
Today is off to a good start too with the Dow up over 100 points so far. Now lets see what impact Ben has.Today is off to a good start too with the Dow up over 100 points so far. Now lets see what impact Ben has.
9.45am: Ben Bernanke's testimony to Congress is the political highlight of the day, as the Federal reserve chairman is grilled by politicians over the state of the US economy.9.45am: Ben Bernanke's testimony to Congress is the political highlight of the day, as the Federal reserve chairman is grilled by politicians over the state of the US economy.
That's coming up shortly. In the meantime, here's Ryan Devereaux with a summary of developments:That's coming up shortly. In the meantime, here's Ryan Devereaux with a summary of developments:
• Federal Reserve chairman Ben Bernanke will pay a visit to Capitol Hill today to answer questions on the nation's economy. He is expected to be questioned about the economic crisis in Europe, and how that will impact on the US economy. In its late April forecasts the Fed brightened its predictions for 2012, anticipating more growth and lower unemployment than it had three months earlier. But since then job growth has slumped and stock prices have fallen.• Federal Reserve chairman Ben Bernanke will pay a visit to Capitol Hill today to answer questions on the nation's economy. He is expected to be questioned about the economic crisis in Europe, and how that will impact on the US economy. In its late April forecasts the Fed brightened its predictions for 2012, anticipating more growth and lower unemployment than it had three months earlier. But since then job growth has slumped and stock prices have fallen.
• There are signs of improvement in the nation's battered labour market. For the first time since April the number of Americans lining up for jobless benefits last week declined. According to the labour department, state unemployment benefits dropped 12,000 to a seasonally adjusted 377,000. Claims had risen for four consecutive weeks prior to last week, while last month's jobless rate was 8.2%, well above the long-term historical average.• There are signs of improvement in the nation's battered labour market. For the first time since April the number of Americans lining up for jobless benefits last week declined. According to the labour department, state unemployment benefits dropped 12,000 to a seasonally adjusted 377,000. Claims had risen for four consecutive weeks prior to last week, while last month's jobless rate was 8.2%, well above the long-term historical average.
• President Barack Obama and the Democratic party raised $60m in May, outpacing their April fundraising total of $43.6m. The sum includes cash collected after Obama announced his support for same sex marriage. The president took to Twitter yesterday to say that the average donation he received was $54.94.• President Barack Obama and the Democratic party raised $60m in May, outpacing their April fundraising total of $43.6m. The sum includes cash collected after Obama announced his support for same sex marriage. The president took to Twitter yesterday to say that the average donation he received was $54.94.
98% of the donations the campaign received in May were less than $250, and the average donation was $54.94.98% of the donations the campaign received in May were less than $250, and the average donation was $54.94.
So far the president and the Democratic party have collected $450m for their 2012 re-election campaign. Mitt Romney's campaign has yet to post its totals from last month.So far the president and the Democratic party have collected $450m for their 2012 re-election campaign. Mitt Romney's campaign has yet to post its totals from last month.
• A new CBS News/New York Times poll finds more than two-thirds of Americans want to see the Supreme Court overturn some or all of president Obama's signature healthcare law. Forty-one percent of respondents said they want to see the law overturned altogether, 27% wanted the justices to overturn the individual mandate and just 24% said they hoped the court "would keep the entire healthcare law in place."• A new CBS News/New York Times poll finds more than two-thirds of Americans want to see the Supreme Court overturn some or all of president Obama's signature healthcare law. Forty-one percent of respondents said they want to see the law overturned altogether, 27% wanted the justices to overturn the individual mandate and just 24% said they hoped the court "would keep the entire healthcare law in place."
• Texas congressman Ron Paul has acknowledged that he will not have enough delegates to win the Republican presidential nomination. In a statement to his supporters last night Paul said: "When it is all said and done, we will likely have as many as 500 supporters as delegates on the Convention floor. That is just over 20%! And while this total is not enough to win the nomination, it puts us in a tremendous position to grow our movement and shape the future of the GOP!" With a highly organized base of deeply committed backers, Paul has managed to rack up a number of delegates in states he did not win.• Texas congressman Ron Paul has acknowledged that he will not have enough delegates to win the Republican presidential nomination. In a statement to his supporters last night Paul said: "When it is all said and done, we will likely have as many as 500 supporters as delegates on the Convention floor. That is just over 20%! And while this total is not enough to win the nomination, it puts us in a tremendous position to grow our movement and shape the future of the GOP!" With a highly organized base of deeply committed backers, Paul has managed to rack up a number of delegates in states he did not win.