Weekly Wrap: The Federal Reserve and the debt talks

Marketplace Staff Jul 15, 2011
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Weekly Wrap: The Federal Reserve and the debt talks

Marketplace Staff Jul 15, 2011
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Kai Ryssdal talks with Leigh Gallagher from Fortune magazine and Sudeep Reddy from the Wall Street Journal.

On Ben Bernanke’s latest back-and-forth remarks:

Sudeep Reddy: It is pretty confusing. And the difference was the number of questions he got on one day versus the other on this particular issue. He’s really in this careful dance right now, trying to improve the public’s confidence without sounding terrified about this latest slowdown. He wants to show that the Fed isn’t out of tools entirely.

On why the markets don’t seem to be affected by the debt talks:

Leigh Gallagher: I think the Fed has a singular ability to move markets more than almost anybody else. I think much of the talk in Washington is so political, and I think the markets realize that. And I think there is an expectation that we’re not going to default; that this is all show and theater.

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