Here are the two “money” sentences from Fed chair Ben Bernanke’s Jackson Hole speech today on housing:
- The Federal Reserve stands ready to take additional actions as needed
to provide liquidity and promote the orderly functioning of markets.
- It is not the responsibility of the Federal Reserve–nor would it be
appropriate–to protect lenders and investors from the consequences of
their financial decisions.
You can use ’em both to make whatever case you want, and while I think they are appropriately counterbalances, Fed critics are going to seize on the two lines as being entirely in conflict. They aren’t, as I’ll explain tonight on CNBC.