Credit Suisse says to buy Magyar Telekom
Federal Reserve Chairman Ben S. Bernanke suggested that a break from raising interest rates is near without explicitly saying so, leaving himself wiggle room in case higher inflation persists. Bernanke told the Senate Banking Committee yesterday that he's wary of lifting borrowing costs too high and said there are lags between changes in policy and their impact on the economy. Growth is already slowing, Bernanke said, and Fed forecasters expect the pace of price increases to ease as well. The chairman refrained from describing the path of rates and instead pointed to the state of the economy to imply that the two-year tightening is nearing an end. Inflation expectations, which rose in April after he specifically said the central bank may pause, were unchanged yesterday, as measured by securities linked to consumer prices. Those earlier comments led some investors to charge Bernanke was soft on inflation. „This is a more mature kind of statement,” said Credit Suisse chief economist Neal Soss, who worked as an assistant to former Fed chief Paul Volcker. „He's explaining to you what's on their mind, what's the analytical framework they're using. But he's not pre-committing to a particular course of action, because that's not appropriate under these circumstances.” (Portfolio, Bloomberg)
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