The Federal Reserve isn't ready to take its foot off the gas pedal. In a speech this morning in Arlington, Virginia, Ben Bernanke said that while the Fed was encouraged by the downward trend in unemployment numbers, it believes that the economy needs “continued accommodative policies” to keep the good vibes coming. He said that interest rates are likely to remain low through at least 2014. “Conditions remain far from normal,” he said, according to Bloomberg.
Stocks soared on the pronouncement, with the Dow up about 130 points as of 10:30am ET, as many investors anticipated new Fed giveaways, MarketWatch reports. But not everyone is so sure. "Stocks think Bernanke has promised QE3; he hasn't," tweeted one economist. And Matthew Yglesias at Slate worries about the side-effects of Bernanke's “Eeyore strategy.” Sure, he's convincing investors interest rates will stay low, but he's also scaring them off investing in actual business equipment and structures. Click for more. (Read more Ben Bernanke stories.)