Fri, 15 Oct 2010 14:54:00 +0200

Bernanke's statements suggest further easing

FXstreet.com (Barcelona) - Federal Reserve chairman Ben S. Bernanke appeared today at the Federal Reserve Bank of Boston delivering a speech on Monetary Policy in a Low-inflation Environment. The head of the FOMC maintained his stance on the perils of unemployment and the resulting low spending, which makes every look turn towards the next Fed meeting. About it, Bernanke affirmed "There would appear to be a case for further expansion", a discussion surely to take place along with that about the possibility that the "Fed could purchase assets and modify commitment to long term [low rates]".

In terms of the economic situation, the chairman began by stating that "economic growth less vigorous than we would like", and in more detail he referred to the almost despairing situation of the jobs market which derives to a "Balance Sheet repair impeded by unemployment and slow recovery". He also said "Underlying inflation will be below target rate for some time" and along those lines warned that "Risk of deflation is higher than desirable".