FINANCIAL TIMES: US Federal Reserve chairman Ben Bernanke struck a cautious tone on the health of the economy in testimony to Congress but gave no hint that more stimulus from the central bank is near.
The pace of the economic recovery remains “frustratingly slow” and “the sluggish expansion has left the economy vulnerable to shocks”, Mr Bernanke told the House of Representatives budget committee. But he added: “Fortunately, over the past few months, indicators of spending, production and job market activity have shown some signs of improvement”.,,
Mr Bernanke’s neutral tone suggests that the Fed may wait for more information on the economy’s progress before deciding whether to loosen monetary policy further, perhaps with a third round of quantitative easing, nicknamed QE3… (more)
