Steven C. Johnson
August 24, 2011
NEW YORK (Reuters) – Whether the Federal Reserve likes it or not, its unprecedented monetary polices over the last few years have conditioned the financial markets to expect a helping hand when the going gets tough.
That’s why all eyes will be on Ben Bernanke, the central bank’s chairman, when he speaks Friday at the Fed’s annual symposium in Jackson Hole, Wyoming.
With the stock market mired in a month-long slump and both the U.S. and euro zone economies in danger of sliding into recession, investors are bracing for a possible repeat of last year’s performance, when Bernanke hinted the Fed would act if conditions deteriorated.