This blog post originally appeared on RealMoney Silver on April 27 at 7:34 a.m. EDT.This afternoon's press conference by Fed Chairman Bernanke will be a nonevent. For the past few weeks, commentators in the business media have been obsessed with this afternoon's press conference, the first of its kind by a Fed Chairman. It will be a nonevent for several reasons:
- The Professor vs. the Media. Chairman Bernanke is well versed in Fed doubletalk; he will reveal very little that hasn't already been communicated previously. Bernanke knows his subject matter better than his questioners in the Fourth Estate; as such, he knows exactly what to expect and how to respond in today's Q&A session.
- Today's Fed Dual Mandate. This is the first step toward more Fed transparency. In part, Bernanke thinks this is a good idea; in part, it is in retaliation to the anti-Fed cabal in Washington, D.C. But, first steps are typically baby steps that will not be revelatory. (Such is life!)
- Same Old, Same Old. Investors already know what to expect from the Fed; there will be no substantive surprises. Bernanke will emphasize:
- the continued weakness in the U.S. residential real estate markets;
- the likely continuation of a zero interest rate policy into next year;
- the end of QE2 (at its originally scheduled time slot); and
- that there are no current/immediate plans for QE3.