Bernanke: Quantitative Easing ‘Til 2014
Federal Reserve Chairman, Ben Bernanke, has pledged to keep interest rates at near zero until 2014. Although there are many signs of economic recovery and stability, Bernanke intimated that he’s persisting with the plan due to unemployment:
“…the economy has been expanding moderately. Labor market conditions have improved further; the unemployment rate has declined notably in recent months, but remains elevated.”
Ultimately, the Fed wants to see a sustained recovery before replacing quantitative easing with new policies. The reason for the hesitation, according to Robert Brusca, Chief Economist of the agency, Fact and Opinion Economics, is that risks remain:
“The risks are that something could happen. The economy could tail off. It’s not what I think is happening, but I think that if you’re Bernanke and if you’ve got the finger on the switch, it makes you more cautious and makes you want to really, really be sure before you flick that switch and say we are going in another direction.”
Related Topics: Economy and Politics
