WASHINGTON (MNI) – The following is an excerpt from Federal Reserve
Chairman Ben Bernanke’s press conference Wednesday.
QUESTION: Many analysts have characterized today’s step as somewhat
modest. Your own outlook has a much lower GDP projection, the
unemployment rate in your outlook look shows possibly no improvement at
all in the unemployment rate through the end of this year. The program
itself is smaller and of shorter duration than the original Operation
“Twist. Given this weaker outlook, why such a modest program? And when
you say you are prepared to take further action, which is a stronger
characterization than in your last meeting, does that mean you are
prepared to do a full-on new asset purchase program?
BERNANKE: There has been a great deal of economic news since our
last meeting. The incoming data were somewhat disappointing, but not
entirely clear how to read them, particularly regarding seasonal
adjustment and other factors. Meanwhile, Europe has had additional
problems. We have seen some of those effects in national markets. There
is a case to be made for making additional judgments about where the
economy is going. That being said, the step we took, the extension of
the maturity extension program, I think it is substantive and will
provide some additional support. And yes, doing additional asset
purchases would be among the thing we would certainly consider if we
need to take additional measures to strengthen the economy.
** MNI Washington Bureau: 202-371-2121 **
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