According to various reports and Bernanke's written testimony, the economy is growing at a moderate rate. He is saying the Fed has accomodated monetary policy and will respond IF NECESSARY. The Fed is prepared to take action in the event that financial problems escalate. We think this basically means that the Fed won't do much until things get much worse. Bernanke will also tell Congress to do its job and resolve the fiscal issues.
We must say the the Republican representative Kevin Brady (TX) just told Bernanke that he doesn't think QE3 would help. He is asking very good questions such as - tell us exactly what you will do regarding QE3 and under what circumstances?
If interested, a live coverage of the entire testimony is here: http://www.c-span.org/Live-Video/C-SPAN3/
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