BofA Merrill Lynch Global Research – US Economics Report Sunday 3 March 2013
Fed chairman restates support for easy policy
Speaking Friday evening, Federal Reserve Chairman Ben Bernanke affirmed his view that, in light of the economic outlook, “monetary policy must remain accommodative.” While acknowledging that low rates may “pose risks to financial stability,” he countered that tightening policy now could be “counterproductive” and emphasized the oversight actions the Fed has been taking to identify and mitigate those risks. In our view, his speech re-affirms that the Fed leadership and the majority of FOMC voters will continue with QE3 purchases well into next year.
Read the full report here.