Bernanke Talks Dollars!

The U.S. Federal Reserve traditionally never talks about the dollar — that’s usually the Treasury’s job, as it oversees dollar policy.

But Fed Reserve Chairman Bernanke did just that in prepared remarks to the Economic Club of New York this afternoon.

“We are attentive to the implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster foster both maximum employment and price stability,” Bernanke remarked.

“Our commitment to our dual objectives, together with the underlying strengths of the U.S. economy, will help ensure that the dollar is strong and a source of global financial stability,” Bernanke continued.

The dollar attention comes in the wake of criticism from a senior Chinese official that the Fed’s policies are encouraging a “huge carry trade” that was having “a massive impact on global asset prices” (see the Financial Times’s take on China’s top banking regulator Liu Mingkang here) and as President Obama visits China and the Asia-Pacific nations. Bernanke’s remarks halted a slide in the dollar, with the greenback fetching $149.11 to the Euro in afternoon trading.

– Randall Forsyth, Barrons.com