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Market insight: Reasons to believe in the ‘Bernanke put’

By Ian Harnett

Published: September 19 2007 17:41 | Last updated: September 19 2007 17:41

It would be churlish not to thank Mr Bernanke for the double dose of relief given to the global markets with the 50 basis point cuts in both the discount and Fed funds rates.

The positive response of global equities highlights how the move was both unexpected and welcome. Now that the Fed cites “developments in the financial markets” as influencing their policy assessment, investors have good reason to believe in the “Bernanke put”.

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