QE2 to Continue, Economy "Disappointingly Slow"

Ben Bernanke
From Bloomberg - Federal Reserve officials kept their plan to expand record monetary stimulus, saying the economic expansion hasn’t been strong enough to reduce joblessness. The Fed’s $600 billion of Treasury purchases are aimed at boosting a recovery that has been “disappointingly slow” and keeping prices stable “over time,” the Federal Open Market Committee said in a statement today in Washington. The central bank repeated its pledge to leave the benchmark interest rate low for an “extended period.” Chairman Ben S. Bernanke is bucking criticism from top Republican lawmakers by sticking with unconventional efforts to lower an unemployment rate persisting near a 26-year high. Gains in manufacturing, retail sales and inflation expectations indicate asset purchases may be helping. The strengthening dollar has defied skeptics who said the policy would weaken the currency. Read full story here:


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