ICBA - Bernake: Fed Has More Stimulus Options
Bernanke: Fed Has More Stimulus Options
Federal Reserve Chairman Ben Bernanke told Congress
that continued economic weakness might require additional monetary stimulus. Testifying before the House Financial Services Committee, Bernanke said that even with the federal funds rate near zero, the central bank can deploy other tools to ease financial conditions. He said the Fed could provide more explicit guidance about the period over which the federal funds rate and the balance sheet would remain at their current levels, initiate more securities purchases or increase the average maturity of our holdings. On the other hand, he said, the economy could evolve in a way that would warrant a move toward less-accommodative policy.