Bernanke says the Fed needs to consider whether the current stance on monetary policy is appropriate. US data is worsening and downside risks are rising. inflation has improved but the outlook is still highly uncertain. he says the Fed will use all the tools at its disposal to improve market liquidity and function. (Don;t forget the hammer! i.e. rate cuts…)
Stocks are recovering on the easing signal and EUR/JPY is following suit.
