BERNANKE REASSURES ON INFLATION IN FIRST PRESS CONFERENCE - Members of the euro zone are well acquainted with the regular press conferences by ECB president Jean-Claude Trichet and the somewhat obscure language he uses to signal changes in European Central Bank monetary policy. The chairman of the Federal Reserve - for the first time in its history - has done the same and Ben Bernanke spoke at length to reporters yesterday.
Tom Petruno, markets editor of the LA Times, says that historically the US Federal Reserve has been like a sphinx. Up to 1994, it did not even tell the public what it was doing, much less why it was doing it. Ben Bernanke's predecessor, Alan Greenspan, was also a master of obfuscation and spoke in circles. However, now the US public wants more accountability and Mr Bernanke is meeting their demands. The journalist says that Mr Bernanke has taken steps to show that the Federal Reserve is sensitive to the average person in the street and is keen to show that it is working on its mandate of keeping unemployment under control.
Mr Petruno says there were no real surprises in yesterday's press conference. US interest rates were kept at record lows, as expected, while Mr Bernanke also said that the bank's bond buying programme is on track to end in June. The Fed chief also signalled his concern about the rising rate of inflation and said he was sensitive to the pressures of rising prices on the man in the street. However, Mr Petruno says that people in the US believe that the Fed is losing control of inflation with gold and oil prices reaching record highs.
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MORNING BRIEFS - Speculation about a Greek restructuring continue this morning. Austria has made it clear that it is not keen on the idea. Its finance minister Maria Fekter has said such a move would hurt her country and take pressure off Athens. She said that it would allow Greece to act as if 'nothing had happened'. The Austrian finance minister said she did not think Austria would have to 'shell out' money again.
*** In its LEX column the Financial Times this morning says that unless there is a 'huge and politically unacceptable' transfer of money from the euro zone to Greece, a restructuring of Greek debt looks 'inevitable'.
*** On the currency markets, the euro is worth $1.4840 US cents and 88.7 pence sterling
