Ben Bernanke has signalled the US Federal Reserve will not be launching a third round of quantitative easing.
The chairman of the Federal Reserve said that economic recovery “appeared to be proceeding at a moderate pace”.
Mr Bernanke said in a speech in Atlanta “The US economy is recovering from both the worst financial crisis and the most severe housing bust since the Great Depression, and it faces additional headwinds ranging from the effects of the Japanese disaster to global pressure on markets,”.
Last November, the Federal Reserve’s second round of round of asset purchases, due to finish at the end of June. Bernanke has hinted that the Fed is more likely to hold on to the assets for a longer period.
“Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established.”