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Bernanke says Fed stimulus benefits clear, downplays risks
Reuters ^ | February 26th, 2013 | Pedro da Costa and Alister Bull

Posted on 02/26/2013 1:25:39 PM PST by LucianOfSamasota

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke strongly defended the U.S. central bank's monetary stimulus before Congress on Tuesday, easing financial market worries over a possible early retreat from bond buys.

The Fed chairman also urged lawmakers to avoid sharp spending cuts set to go into effect on Friday, which he warned could combine with earlier tax increases to create a "significant headwind" for the modest economic recovery.

Bernanke said Fed policymakers are cognizant of potential risks from their extraordinary support for the economy, including the possibility that it might fuel unwanted inflation or stoke asset bubbles.

But, in testimony on the central bank's semi-annual report on monetary policy, he said the risks did not seem material at the moment, adding the central bank has all the tools it needs to retreat from its monetary support in a timely fashion.

"To this point, we do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery and more rapid job creation," Bernanke told the Senate Banking Committee.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Government; News/Current Events; Philosophy
KEYWORDS: bernanke
Sounds like Argentina's foreign minister.
1 posted on 02/26/2013 1:25:45 PM PST by LucianOfSamasota
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To: LucianOfSamasota
Sounds like Argentina's foreign minister.

Ditto that. When the Fed announced opened ended QE last fall, they did it for a reason. Everything was appearing to fall apart and they knew it. 6 months later the power brokers are trying to convince everybody that things are back to normal.

2 posted on 02/26/2013 6:02:58 PM PST by EVO X
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To: LucianOfSamasota


And in other news, the chocolate ration will be ~raised to 25 grams per week from the present 45...
3 posted on 02/27/2013 3:15:37 AM PST by TArcher
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