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Ben Bernanke isn’t in Barcelona right now, but his speech made earlier this morning was. And he has been speaking words meant to “build confidence” in the stock market right now — as well as the US dollar in forex trading.

Mortgage News Daily reports on Bernanke’s remarks concerning dollar weakness:

“We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations and will continue to formulate policy to guard against risks to both parts of our dual mandate, including the risk of an erosion in longer-term inflation expectations,” he said.

Bernanke also addressed other issues, including inflation and the housing market.

Stock market and Ben Bernanke’s remarks

Bernanke’s remarks also gave the stock market a bit of a boost. Bernanke insists that the second half of this year will see economic recovery, and that is adding optimism to the stock market, causing it to recover some of its losses from yesterday. Black Enterprise reports on what Bernanke said about the economy:

After the central bank’s recent interest rate cuts, loans to banks and tax rebates, the second half of the year should bring “somewhat better economic conditions,” Bernanke said in a speech in Spain. The economy faces headwinds, however, and the inflation picture remains uncertain, he said, indicating that the Fed still intends to keep interest rates on hold.

It is clear that investing decisions will have to take this information into account, and that investors in a variety of sectors will have to consider their moves — at least for now — in light of Bernanke’s comments.

However, I am skeptical of how long “boosting confidence” will keep the economy moving. Something solid will have to emerge soon in order to have lasting effect.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions.

Tags: stock market, investing news, investing blog, Ben Bernanke,
economy, investing, forex trading