Federal Reserve Chairman, Ben Bernanke, says the central bank “would not hesitate” to launch another round of bond purchases if it looked like the economy needed it. His statement comes as Fed policymakers ended a two-day meeting by keeping interest rates near zero.
Explaining Bernanke’s position on the possibility of further quantitative easing is Steven Ricchiuto, Chief U.S. Economist at Mizuho Securities:
“He wants to hold out the carrot that if more needs to be done, they’ll certainly step up to the plate to do it. But by the same token, they don’t feel they have any requirements at this juncture to execute that it’s why they’re not willing to commit. So it’s like he’s saying: “I’m here, I’m ready if I need to do it, but I can’t promise you anything today.”