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17 Jul 2013
Bernanke: Bond purchases remain data-dependent
FXstreet.com (Córdoba) - Chairman Ben Bernanke said there's no "preset course" for the Fed's bond purchases. The comments left tapering on the table, although he added Fed's intention is to keep monetary policy very accommodative for the foreseeable future. Bond purchases are flexible and will respond to economic data.
Adding to his dovish remarks, Bernanke said in the Q&A session before the Congress that there is "broad support" on the Fed's policy-making committee for using 7% unemployment rate as an indication of what kind of improvement in the economy the Fed wants to see before it decides to end its asset purchase plan.
However, he stressed that the 7% is not a target the Fed is aiming for, but rather was meant to "be indicative of the amount of improvement we want to see in the labor market". "It is a threshold, not a trigger".
President also noted that the US is in a difficult financial environment a, but markets have begun to understand Fed's thinking. He said fiscal policy is too focused on the short-term.
Adding to his dovish remarks, Bernanke said in the Q&A session before the Congress that there is "broad support" on the Fed's policy-making committee for using 7% unemployment rate as an indication of what kind of improvement in the economy the Fed wants to see before it decides to end its asset purchase plan.
However, he stressed that the 7% is not a target the Fed is aiming for, but rather was meant to "be indicative of the amount of improvement we want to see in the labor market". "It is a threshold, not a trigger".
President also noted that the US is in a difficult financial environment a, but markets have begun to understand Fed's thinking. He said fiscal policy is too focused on the short-term.