Bernanke: Fed Prepared to Take Action

Says inflation, employment both too low
By Kevin Spak,  Newser Staff
Posted Oct 15, 2010 8:28 AM CDT
Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in this file photo.   (AP Photo/Manuel Balce Ceneta)
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(Newser) – Ben Bernanke signaled today that the Federal Reserve intends to take unconventional steps to further stimulate the economy. Bernanke said that given the low rate of inflation—it’s running below the Fed’s 2% target—and high unemployment rate, “there would appear—all else being equal—to be a case for further action.” That likely means that the Fed will restart its program to purchase long-term Treasury bonds, the Wall Street Journal reports.

Bernanke noted that such unconventional measures carried their own risks, and promised to proceed with caution. But he concluded that “the FOMC is prepared to provide additional accommodation if needed to support the economic recovery and return inflation over time to levels consistent with our mandate.”

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