Bernanke paves the way for more stimulusSubmitted by RegularJohn on Fri, 08/31/2012 - 10:41
"Bernanke staunchly defended the Federal Reserve's two previous rounds of large asset purchases, saying they drove stocks higher, improved financial markets and created more than 2 million jobs. He also refuted several potential risks associated with those policies and talked up their benefits.
"The odds are strong that the Fed's asset purchases will make money for the taxpayers, reducing the federal deficit and debt," Bernanke said. "And, of course, to the extent that monetary policy helps strengthen the economy and raise incomes, the benefits for the U.S. fiscal position would be substantial."
The chairman also hinted that a third round of asset purchases known as quantitative easing -- or QE3 -- could be coming, by reiterating the Fed's willingness to pull the trigger."
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