Ben S. Bernanke’s word is very powerful. Experts are convinced that any message made by the Chairman of the Board of Governors of the Federal Reserve System may make a miracle on the stock markets. Expert Steven Major considers that it could be compared to the Maradona effect. The analogy, first applied to monetary policy by Sir Mervyn King, former Bank of England governor, refers to the ability of the famed footballer to clear a path to goal by wrongfooting opposing players as they tried to anticipate his next move. The same do some regulators, which due to investors’ trust may rule the markets as they virtually do no changes in key concepts of the monetary policy. According to Major, hints about continuation of buying of bonds reduce the yield rates; on the contrary the hints about QE3 trimming produce the reverse effect. Thus, Steven is sure Bernanke has achieved the rates increase having strengthened the US dollar position simultaneously doing nothing special. Major drawn a parallel and arrived at a conclusion that particularly Bernanke’s speeches gave stimulus to the growth of the yield rates in the past several months. The increase of yield rate induced the investors to invest in the US bonds, thus strengthening demand on the US dollars. Consequently, the same words may have diverse influence on the current state of affairs.
