A market this peppy is asking for another 25 BP rate hike...and 50 BP would be more in order than a continuation of the "baby steps" approach.
And Bernanke's speech seemed to be going soft on inflation again... This guy can talk out of both sides of his mouth like a UN weapons inspector...!
HERES BERNANKE'S CONCLUSION:
"In conclusion, energy prices have moved up considerably since the end of 2002, reflecting supply and demand factors. In the short run, prices are likely to remain high in an environment of strong world economic growth and a limited ability to increase energy supplies. Moreover, prices are likely to be volatile in the near term, given the small margins of excess capacity to produce crude oil or natural gas that traditionally have buffered short-run shifts in supply and demand. "
