Bernanke signals the US Fed to help restore strong growth
8 September 2011 (LTN) US Federal Reserve Chairman Ben Bernanke Thursday said the US central bank will spare no effort to boost disappointingly weak growth and unemployment, he downplayed concerns about inflation.
The Fed chairman did little to ease expectations of a further easing of monetary policy when officials meets on September 20-21, he offered no details of steps the Fed could take.
The Federal Reserve will do all it can to help restore high rates of growth and employment in a context of price stability, Bernanke told the Economic Club of Minnesota.
In what could be taken as a bid to quell concerns among some of his colleagues that a further monetary easing could spark inflation, Mr. Bernanke said a rise in prices this year would likely to be transitory.
We see little indication that the higher rate of inflation experienced so far this year has become ingrained in the economy, he said.
US stocks fell, while the USD extended gains against the Euro, and US Treasury debt prices rose on Bernanke's comments.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.