The central bank of the United States believes that America is still a ways from economic recovery, which could soon prompt the Federal Reserve to announce a new round of quantitative easing, or QE3.
Fed Chairman Ben Bernanke addressed the economic status of the US on Wednesday and experts predict that the grim statement he offered suggest that QE3 is just around the corner.
“The framework makes very clear that we need to be thinking about ways to provide further stimulus if we don’t get improvement in the pace of recovery and a normalization of inflation,” Chairman Bernanke said at a conference Wednesday. He added that unless the US sees a major economic recovery anytime soon, the Fed would be needed to step up to the plate.
“It sounds like the finger is on the trigger,” Thomas Simons, a money market economist at Jefferies & Co, explains to Reuters.
In August, Bernanke said that the road to recovery was “much less robust” than the Federal Reserve had hoped for, and as unemployment and poverty continue to cause concerns from Wall Street to Main Street months down the road, a new round of quantitative easing could soon be introduced by the bank.
According to the chairman, the purchasing of bonds to boost the economy is “an option that is certainly on the table”
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