This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

In His Own Words: How Bernanke Explained Fed Plans

If those forecasts are right, that would mark "substantial progress," he said.

The caveat

Nice as all that sounds, Bernanke made clear that the Fed is just as prepared to maintain its current pace of bond-buying if the better economic trends don't materialize.

"If you draw the conclusion that I just said that our purchases will end in the middle of next year, you've drawn the wrong conclusion," he said. "Our purchases are tied to what happens in the economy."

Bernanke likened any reduction in the Fed's bond purchases to a driver letting up on a gas pedal rather than applying the brakes. The Fed could just as easily step on the gas again, he said.

And he stressed that even after the Fed ends its bond purchases, it will maintain its $3.4 trillion investment portfolio, which will help keep long-term rates down.

"We will be providing whatever support is necessary," Bernanke said. "If the economy does not improve along the lines that we expect, we'll provide additional support."

It's business, not personal

Many economists think Bernanke will step down as Fed chairman in January, when his second four-year term ends. President Barack Obama said in a television interview earlier this week that Bernanke had already served longer than planned.

But Bernanke has been tight-lipped on his future.

"I would like to keep the discussion on monetary policy," he said. "I don't have anything for you on my personal plans."

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs