Ben wont rule out further bond buying

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.”

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.”


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell