Is monetary easing, weaker currency and a devalued dollar inevitable?
*Reuters, by Pedro Nicolaci da Costa, August 24, 2012
”The Federal Reserve has room to deliver additional monetary stimulus to boost the U.S. economy, Fed Chairman Ben Bernanke told a Congressional oversight panel in a letter.
‘There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery,’ Bernanke wrote to the committee’s chairman, Representative Darrell Issa, in a letter obtained by Reuters on Friday.
Bernanke at the end of next week will give a closely watched speech at an annual symposium in Jackson Hole, Wyoming, which will be closely watched for clues into the prospect of further bond-buying from the Fed.
Asked if it was too soon to consider new monetary easing steps when the Fed’s Operation Twist program aimed at lowering long-term bond yields was still in effect, Bernanke said policymakers must invariably look beyond the immediate term.”
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