Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

WASHINGTON, DC - JANUARY 07: Federal Reserve Board Chairman Ben Bernanke testifies during a hearing before the Senate Budget Committee January 7, 2011 on Capitol Hill in Washington, DC. (Alex Wong/2011 Getty Images)
WASHINGTON, DC - JANUARY 07: Federal Reserve Board Chairman Ben Bernanke testifies during a hearing before the Senate Budget Committee January 7, 2011 on Capitol Hill in Washington, DC. (Alex Wong/2011 Getty Images)

Read Bernanke's lips: No QE3 Add to ...

Federal Reserve Chairman Ben Bernanke made it clear at his press conference on Wednesday afternoon that the central bank sees no need to usher in another round of bond buying - known as quantitative easing - to help give the sagging U.S. economy a much-needed jolt. At least not yet.

He noted that when he began discussing the need for a second round of quantitative easing - dubbed QE2 - last August, the economic backdrop was considerably different than it is today. Back then, the Fed's dual mandate of maximizing employment and stabilizing prices was under threat: Deflation was a risk and employment wasn't improving.

Now, while recent economic data have pointed to sluggish economic improvements, the situation is different. The threat of deflation has receded and there has been some improvement in the labour market, though Mr. Bernanke described these improvements as "frustratingly slow."

In other words, while he believed that the case for action from the Fed was clear last summer, the situation is different today. But, he assured listeners that the Fed will act as needed.

Follow on Twitter: @dberman_ROB

 

For Globe Unlimited Subscribers

Business videos »

Most popular videos »

Highlights

Most Popular Stories