Thursday, June 7, 2012
Federal Reserve Chairman Ben Bernanke offered little hope Thursday for anyone looking for more central bank intervention, instead relying on an oft-repeated pledge to step in if necessary.
As a result, the stock market, which had been well into its third consecutive strong rally, pared gains as traders weighed where the Fed stands on the economy’s late-spring slowdown.
“Boy, that was anti-climactic,” Pierpoint economist Stephan Stanley said. “There was absolutely nothing in terms of a policy signal…no different than what he might have said at any point over the last few years.”
Bernanke told a congressional panel that the central bank is “prepared to take action” if needed to boost the U.S. economy, but made no specific commitment to more easing.
Instead, the Fed leader said the economy continues to grow at a moderate pace but faces challenges from the jobs market as well as the debt crisis in Europe.
This article was posted: Thursday, June 7, 2012 at 8:25 am