• “Chairman Bernanke’s prepared testimony broke no new ground. The Fed’s next move continues to be entirely data-dependent. If the economy evolves as the Fed has forecast, look for the tapering of QE purchases to begin in September.” Steve Oliner, former senior Fed official.
• “Chairman Bernanke’s dovish written testimony for the Humphrey-Hawkins hearings on the economy and Fed policy aims to make three points: tapering (less bond purchases/QE by the Fed) is not tightening; when tapering occurs depends on the economy; and zero interest rate policy, ZIRP, will continue for an extended period, probably until late 2015.” John Makin, Wall Street chief economist for 20+ years.
• “As expected, Bernanke continues to try to repair the market damage that he did earlier in the month by providing specific dates for an exit from QE3. One must welcome his now emphasizing the more appropriate policy line that the exit from QE3 will be strictly conditions based.” Desmond Lachman, former managing director, Salomon Smith Barney.
Check out @AEIecon for real-time scholar reactions to Bernanke’s testimony before the House Financial Services Committee beginning at 10 AM. On Thursday, he’ll testify before the Senate Banking Committee.
Check out AEI’s work on the Federal Reserve, QE, and Bernanke here.