Bernanke hints at more stimulus for the US economy
01 Sep 2012
The US central bank chief Ben Bernanke has signalled further measures to boost economic growth in the country, amid concerns over high level of unemployment.
In an eagerly-awaited speech at the annual gathering at Jackson Hole in Wyoming, the federal reserve chairman said: ''The federal reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.''
Further to the global economic downturn triggered by the sub-prime mortgage crisis, the nation's monetary policy maker, the Federal Open Market Committee (FOMC) has been resorting to a series of measures including large-scale asset purchases worth trillions of dollars, as well as interest rate cuts, to stimulate economic growth.
Beginning with November 2008, various asset purchase programmes announced up to the end of 2011 amounted to around $2.35 trillion. In addition, a $400-billion purchase of long-term treasury securities and sale of an equivalent amount of short-term securities was also initiated last year in order to extend the maturities of securities.
The federal funds rate that was 5.25 per cent five years ago has been brought down nearly to a target range of 0 to 25 basis points.
As of July, the unemployment rate had fallen to 8.3 per cent from its peak level of around 10 per cent in October 2009, and payrolls had risen by 4 million jobs from their low point, Bernanke said.
