Bernanke Won't Rule Out 'QE3'

Federal Reserve Chairman Ben Bernanke isn't ruling further quantitative easing measures beyond the Fed's initial plan to purchase $600 billion worth of Treasury securities by the middle of next year.
By Michael Baron ,

NEW YORK (

TheStreet

) --

Federal Reserve

Chairman

Ben Bernanke isn't ruling further quantitative easing

measures beyond the Fed's initial plan to purchase $600 billion worth of Treasury securities by the middle of next year.

In an interview taped on Nov. 30 to be aired on CBS'

60 Minutes

this coming Sunday, Bernanke "explains why the Fed announced its intention to buy $600 billion in Treasury securities, defending against charges the move will lead to inflation and not ruling out the purchase of more," according to

a statement

on the network's Web site.

The Fed

announced its plans to buy $600 billion worth of longer-term Treasury securities on Nov. 3

, saying it would purchase roughly $75 billion each month and look to complete the program by the end of the second quarter.

Stocks have surged since summer's end with much of the buying driven by optimism about the Fed "QE2" plans. The Dow, which is now up 9.2% year-to-date, hit its 2010 closing high of 11,444 on Nov. 5, two days after details of the $600 billion program were announced.

The blue-chip index has since stalled, dipping below 11,000 on an intraday basis as recently as Tuesday, before a rash of better than expected economic data on the homefront and an easing of concerns about eurozone debt contagion abroad prompted this most recent rally.

Bernanke, who spoke to

60 Minutes

correspondent Scott Pelley in Columbus, Ohio, also discusses "deepening unemployment, the prospects of a second recession and taxes" in the interview, which will air at 7 p.m. ET on Sunday.

--

Written by Michael Baron in New York.

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Michael Baron

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