Ben Bernanke soothed investor fears - market rallies

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The market rallied on some good news from the Fed. The constant grind of negativity has been taking its’ toll for quite some time. Investors have been growing weary of interest rate hikes, which are taking their toll on consumer confidence.

Wall Street interpreted Bernanke’s testimony before Congress as a sign the Fed is close to ending its streak of interest rate hikes. Bernanke told the Senate Banking Committee, “We think inflation is going to moderate,” and said the Fed’s previous policy actions, such as rate hikes, could still affect the economy. However, he hedged the inflation outlook by talking about risks that could send prices higher.

There’s no telling how long the ebullience will last. There’s still a slew of other issues, but with some good earnings reports trickling in, the bulls are ready to party. At least for the day.

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