Bernanke offers hint of Fed action |
| Financial Times - Aug 26, 2011 |
The US Federal Reserve “is prepared to employ its tools as appropriate to promote a stronger recovery”, chairman Ben Bernanke said in a speech at Jackson Hole on Friday, dropping a broad hint that the US central bank will soon do more to support an ailing economy.
But Mr Bernanke avoided the emphatic language he used in a similar speech last year, and offered no detailed discussion of the Fed’s easing options, suggesting that he wants to manage expectations carefully of how much the central bank might do.
He said that the Fed’s September monetary policy meeting would be extended from one to two days “to allow a fuller discussion”. That is likely to raise expectations of some further action at the meeting on the 20th and 21st.
“In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus. We discussed the relative merits and costs of such tools at our August meeting. We will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September,” Mr Bernanke said.
Read Full Article from Financial Times
- Posted: 2011-08-26 11:20:47
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