Fed Blunders Again

In the tradition of incompetence established by his predecessor, Fed Chairman Bernanke mistakenly suggested the Board of Governors might be done raising short term rates.

When the news got to the markets, gold and stocks jumped, and bonds fell.

Now Bernanke says he was misunderstood.

Here's part of the quote:

WASHINGTON (MarketWatch) -- Federal Reserve Chairman Ben Bernanke says that the media and the markets had misinterpreted his words last week as a signal that the Fed would stop after one more rate hike, according to CNBC anchor Maria Bartiromo on Monday.

Bartiromo said she asked Bernanke in a conversation during a formal dinner on Saturday night whether "the markets got it right last week in speculating the Fed is done raising interest rates" after his testimony to Congress.

She reported that Bernanke replied no, and that he went on to say that he and his colleagues at the Federal Open Market Committee were trying to "create some flexibility for the Federal Reserve, saying the Fed may pause but the data will really dictate whether more rate hikes will occur at future meetings.