Federal Reserve Chairman Ben Bernanke said the Federal Reserve stands ready to use additional tools to help the US economy in its nascent recovery, but he stopped short of explicit talk that another round of monetary easing is forthcoming.
The central bank chief’s hotly anticipated remarks at Jackson Hole, Wyo., did not entail promises of more quantitative easing—QE3 in market parlance—nor did he discuss specific measures on whether the Fed will make any other attempts at intervention.
Citing “a range of tools that could be used to provide additional monetary stimulus,” he said the Fed “will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September, which has been scheduled for two days instead of one to allow a fuller discussion,” Bernanke
said in the speech.
As the economy languishes in low growth and stock market endures a summer correction, Bernanke’s speech was considered a bellwether for what will lie ahead.
Instead, he mostly reiterated language already used by the Federal Reserve, in which it has expressed concern about the pace of economic recovery.
“It is clear that the recovery from the crisis has been much less robust than we had hoped,” he said.