JACKSON HOLE, Wyo. (MarketWatch) — Federal Reserve Board Chairman Ben Bernanke called the stagnation in the U.S. labor market a grave concern and said he was open to using more quantitative easing as needed to help the economic recovery.
In a speech at the Fed’s Jackson Hole retreat on Friday, Bernanke did not pre-commit to taking action, but he did reinforce the case for more asset purchases. Read full text of comments.
He downplayed the costs of quantitative easing and said the program has worked to “provide meaningful support” to the recovery.
Bernanke called current growth “tepid” and said the economy was “far from satisfactory.” Read a First Take commentary on the speech.
“Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor-market conditions in a context of price stability,” Bernanke said.
Read More at Market Watch. By Greg Robb.