Chairman Ben Bernanke made clear Friday that the Federal Reserve will do more to boost the economy because of high U.S. unemployment and an economic recovery that remains “far from satisfactory.”
Bernanke wouldn’t commit to exactly what the Feds would do, only that it is going to do something, experts say it will be buying up more bonds.
He also argued that the Fed’s moves so far to keep interest rates at record lows and encourage borrowing and spending have helped bolster the economy.
Bernanke stopped short of committing the Fed to any specific move, such as another round of bond purchases to lower long-term rates. But in a speech at an annual Fed conference in Jackson Hole, Wyo., Bernanke said that even with rates at super-lows, the Fed can do more.
He noted that further action carries risks but says the Fed can manage them. The Fed “should not rule out” new policies to improve the job market, Bernanke says.
Bernanke defended Fed actions so far to stimulate the economy.
“It is important to achieve further progress, particularly in the labor market,” Bernanke said. “The Federal Reserve will provide additional policy accommodation as needed.”
The U.S. economy is again struggling to grow. It expanded at a tepid 1.7 percent annual rate in the April-June quarter, the government estimated Wednesday.