Bernanke Warns That More Pumping May Be Needed

0 Posted by - February 29, 2012 - Conspiracies & Scandals, Economics, Money

MonopolyMoney 300x225 Bernanke Warns That More Pumping May Be NeededStocks hovered around the flatline Wednesday as Fed Chairman Ben Bernanke dashed hopes for further monetary stimulus in his testimony to Congress.

Meanwhile, traders seemed to shrug off the Fed’s Beige Book report that said the economy grew at a “modest to moderate” pace in January and February.

The Dow Jones Industrial Average struggled to move back into positive territory, after finishing above the psychologically-important 13,000 level in the previous session for the first time since May 2008.

Coca-Cola [KO  69.89  watchlist up Bernanke Warns That More Pumping May Be Needed  1.04  (+1.51%)   realtime icon Bernanke Warns That More Pumping May Be Needed] gained, while H-P [HPQ  25.61  watchlist down Bernanke Warns That More Pumping May Be Needed  -0.57  (-2.18%)   realtime icon Bernanke Warns That More Pumping May Be Needed] slipped on the Dow.

“We’re seeing a more optimistic mood about the economy but there are still potential potholes,” said John Prestbo, editor and executive director of the Dow Jones Indexes. “The market takes two steps forward, one step back, so people will soon start to notice the progress and will be back in the frame of mind that things are getting better, which will translate into optimism.”

The S&P 500 and the Nasdaq also struggled for direction. The Nasdaq earlier crossed the 3,000 milestone for the first time since December 2000. The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded below 18.

CONTINUED at CNBC.

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