Bernanke says US economy still needs Fed stimulus
US Federal Reserve chairman Ben Bernanke. FEDERAL Reserve chairman Ben Bernanke said on Wednesday that the Fed’s easy-money policy is still necessary, throwing cold water on fresh market expectations that the Fed’s stimulus would soon be ended. Mr Bernanke told an audience of economists in Cambridge, Massachusetts, that the jobs market remains too weak and inflation remains too low for comfort.
His comments came just hours after the release of the minutes from the June 18-19 meeting of the Fed’s policy board, the Federal Open Market Committee, which suggested the central bank would move more rapidly toward winding up its $85bn monthly stimulus programme. The minutes said about half of the FOMC policy makers wanted to fully end quantitative easing (QE) by the end of 2013, six months earlier than the mid-2014 timeline Mr Bernanke laid out to reporters after that meeting.... Read the full, comprehensive news article and discuss at Business Day