Bernanke Dissatisfied With Growth Will Press on With Pace of QE

Fed Chairman Ben S. Bernanke signaled he isn’t close to easing up on $85 billion in monthly bond purchases to spur a stalled economy and bring down 7.8 percent unemployment. The Federal Open Market Committee said in a statement yesterday that growth, while slowed by “transitory factors,” faces “downside risks” even after strains in global financial markets have eased. The expansion will pick up and unemployment will fall in response to “appropriate policy accommodation,” Fed officials told Bloomberg in a statement after a two-day meeting.

Bernanke and his FOMC colleagues are deploying record stimulus through an open-ended expansion of the Fed balance sheet after determining that the benefits from stoking a flagging economy outweigh any risk of financial instability or higher inflation….

Read more at http://www.bloomberg.com/news/2013-01-31/bernanke-dissatisfied-with-growth-will-press-on-with-pace-of-qe.html