Federal Reserve Chairman Ben S. Bernanke, decrying the suffering caused by unemployment of more than 8 percent and defending his unprecedented policies, said more bond purchases are an option as central bankers weigh further steps to spur growth.
“The costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant,†Bernanke said today in a speech to central bankers and economists at an annual forum in Jackson Hole, Wyoming.
Stocks and Treasuries climbed as investors increased bets the Fed will expand its record stimulus. Bernanke, speaking two weeks before the next meeting of the Federal Open Market Committee, said long periods of high unemployment produce “enormous suffering and waste of human talent†and also risk causing “structural damage on our economy that could last for many years.â€
The Standard & Poor’s 500 Index advanced 0.8 percent to 1,410.50 at 11:55 a.m. in New York. The yield on the benchmark 10-year Treasury note fell to 1.59 percent from 1.62 percent late yesterday.
“Given Bernanke’s remarks, additional monetary stimulus seems more likely than it did,†said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “It is not 100 percent, and the timing is an even greater question.â€
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Dean Popplewell
Latest posts by Dean Popplewell (see all)
- Saudi 5-year CDS jump to 11-month high - 10/15/2018
- U.S retail sales increase less than expected in September - 10/15/2018
- Empire State Manufacturing Survey - 10/15/2018