At last year's Jackson Hole symposium, Bernanke suggested the Fed could help growth by buying long-term bonds - a program it enacted soon after, CNBC writes.
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"If the Fed really is going to go down the route of another round of unconventional policy making, I think they've got to go in for, what I called, shock and awe," Russell Jones, Global Head of Fixed Income Strategy at Westpac Institutional Bank told CNBC on Monday. "The problem from Bernanke's point of view is that, really, he is beholden to price action in equity markets, which is not something really where any central bank wants to be."
Jones believes the pressure on Bernanke to respond with a policy move will be "absolutely overwhelming" if the U.S. stock market sees further selloff. He thinks the trigger point would be a decline of a further 10 percent from the current levels. The recent stock market rout has already wiped out more than 10 percent from major indices. "If we really are in trouble at the end of the week, I think they'll have to respond," Jones said.
http://www.cnbc.com/id/44223463
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