Federal Reserve press conference, 2013-06-19 — Chair Ben Bernanke

Question (Robin Harding, Financial Times): Robin Harding from the Financial Times. Mr. Chairman, you’ve always argued that it’s the stock of assets that the Federal Reserve holds which affects long-term interest rates. How do you reconcile that with a very sharp rise in real interest rates that we’ve seen in recent weeks? And do you think the market is correctly interpreting what you think is most likely to be the future path of the Federal Reserve’s stock of assets? Thank you.
Answer: Well, we were a little puzzled by that. It was bigger than can be explained I think by changes in the ultimate stock of asset purchases within reasonable ranges. So I think we have to conclude that there are other factors at work as well, including, again, some optimism about the economy, maybe some uncertainty arising. So, I’m agreeing with you that it seems larger than can be explained by a changing view of monetary policy. It’s difficult to judge whether the markets are in sync or not. Generally speaking though, I think that what I’ve seen from analysts and market participants is not wildly different from what, you know, the Committee is thinking and trying to—as I try today to communicate. I think the most important thing that I just want to convey, again, is that it’s important not to say “this date, that date, this time,” it’s important to understand that our policies are economic dependent and, in particular, if financial conditions move in a way that make this economic scenario unlikely, for example, then that would be a reason for us to adjust our policy.

Question (Ylan Mui, Washington Post): Thanks. Ylan Mui, Washington Post. On Monday, President Obama said in an interview that he believed that you had stayed in your position as chairman for longer than you wanted to and maybe longer than you were supposed to. Do you agree with that assessment of your term, and can you update us on any conversations you’ve had with him about your future?
Answer: Well, Ylan, we just spent two days working on monetary policy issues, and I would like to keep the debate, discussion, the questions here on policy. I don’t have anything for you on my personal plans.