Bernanke: US economy still needs Fed stimulus

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Bernanke: US economy still needs Fed stimulus

Published: 26 Feb 2013 at 23.43
Online news: World

Federal Reserve Chairman Ben Bernanke said Tuesday that the US economy still needs the Fed's stimulus, and warned that looming steep budget cuts could further slow growth.

Federal Reserve Bank Chairman Ben Bernanke testifies in the US Senate on February 26, 2013 in Washington.

Stressing that high unemployment remains the key challenge to the economy, Bernanke told a Senate panel that the central bank's extraordinary $85 billion a month bond-purchase program, aimed at holding down long-term interest rates and encouraging investment, was still merited.

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onlyasking
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Discussion 3 : 27 Feb 2013 at 07.023
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Bloomberg reported yesterday that the Fed will take a half a trillion $ knock when they end the QE program. With some companies trading at a PE ratio of 80:1, how can they not see that they are creating a bubble. With many investors buying corporate junk bonds at extremely low returns, a bond bubble was also created. If the world economy doesn't turn around both the equity and bond markets could pop and wipe out massive amounts of wealth.
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Worzel
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Discussion 2 : 27 Feb 2013 at 06.052
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This is money printing. The more money there is in circulation then the more money there is to bid prices up.

The Fed is a private company, not a Govt department. Its as Federal as FedEx.
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boons
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Discussion 1 : 27 Feb 2013 at 04.081
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What a complete joke. There never was a recovery. There was only a maniacal central banker who took on trillions of dollars in new debt, while promising to pay it all back at some fairy tale point in the future when America's overpriced jobless workers would magically find themselves at full employment. Bernanke has taken the classic central bank path of failure and dressed it up to look like its somehow something different than plain old irresponsibility. Jobs haven't budged. Speculative bubbles have increased. And America is broke. He has failed.
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Bernanke: US economy still needs Fed stimulus | Bangkok Post: news