Fed hawks shriek on sidelines, doves carry day

As reported by Reuters:

So much for the vaunted Federal Reserve consensus.

Federal Reserve Building

Federal Reserve Building (source: Reuters)

Fed Chairman Ben Bernanke made clear on Tuesday that tackling weak growth is the top priority for the central bank as he pushed aside an unprecedented level of internal dissent in promising low rates until at least mid-2013.

The central bank indicated it is ready to venture further into the unknown territory of ultra-cheap money to soothe nervous financial markets and spur growth. That was despite objections from some officials who worry such an approach risks fueling inflation down the road.

“Ben Bernanke has shown himself to be an extremely aggressive steward of the Federal Reserve,” said Robert Tipp, chief investment strategist for Prudential Fixed Income with $240 billion in assets under management.

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