Global markets have remained stable after US Federal Reserve chairman Ben Bernanke said there would be no immediate action by the US government to boost growth.
At close, the FTSE 100 stood at 5129, down a nominal 0.02 per cent since opening, while the Dow Jones has risen by 0.7 per cent in early trades to stand at 11237. 08.
In his speech at Jackson Hole, Bernanke said that the Fed had a range of tools to provide additional monetary stimulus and that the central bank’s next meeting in September would last longer “to allow a fuller discussion” of its next move.
“The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability,” he said.
Speculation had been mounting over whether the chairman of the Federal Reserve would use today’s speech at Jackson Hole, Wyoming, to announce QE3 on the anniversary of his announcement of QE2.