This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bernanke Talks Recovery as Congress Plays Politics

Stocks in this article: SPY DIA MDY GLD

Hensarling took his jabs, saying he felt the "stagnant" growth of the economy in recent years was correlated to the Fed's actions. Though Bernanke pointed out that the Fed is independent of the federal government's direction, many voters still think of them as operating in tandem. So, when Hensarling canvases his district in 2014 and voters press him about government expansion, he can show (among other situations) that he opposed Bernanke and the Fed's current policies.

Rep. Maxine Waters (D., Calif.), the ranking Democrat on the committee, led with her praise of how Bernanke and the Fed have softened fallout from the financial crisis. Generally, Democrats in the House don't spend a lot of time offering great approval of the central bank's actions, but they are a bit less antagonistic when broaching the subject. Stability since the 2008 financial collapse, a slowly improving labor market, a revived housing market and the avoidance of an economic depression can link back to Fed monetary action that started during the crisis.

Democrats have enjoyed much political success since those policies launched at the very end of the Bush administration: Barack Obama won the White House in 2008 and grabbed reelection in 2012; Democrats won a supermajority in the Senate and retained the House in 2008, and retained power in the Senate in 2010 and 2012. Despite losing the House in 2010, Democrats have held on to great power amid the huge economic struggles of the past five years.

Bernanke stuck to script on Wednesday (he's been through enough of these hearings to understand the motivations of the politicians and he largely avoided the politics) and reiterated much of what the market already expected.

Below are a few major points the Fed chairman made in his prepared testimony.

Bernanke said the pace of the Fed's bond purchases are not on a pre-set course, and that the Fed may begin to taper its monetary stimulus in 2013 and possibly end in 2014.

Additionally, Bernanke's testimony said the labor market is improving gradually, but that it is far from satisfactory. Bernanke said that risks to the economy have eased since the fall of 2012.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs