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FBN’s Peter Barnes on Ben Bernanke’s testimony today, in which he said QE3 would be available if needed for the economy.
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Economy but -- given hints as to when they could happen -- -- in Washington with the latest honor mr.
Bernanke's testimony data.
-- that's right actually -- the Fed Chairman saying that the Central Bank is prepared to take further action on the economy with more stimulus may be more quantitative easing easing.
As appropriate.
And despite some weaker numbers lately and a more negative outlook from Bernanke it appears stimulus is not appropriate just yet.
The Fed Bernanke said is watching two indicators in specific.
The first is as mentioned in our statements whether or not -- in fact.
A sustained recovery going on in the labour market or are we stuck.
In the mud so to speak in terms of employment.
That's of course our maximum employment mandate and then the other issue would be price stability.
And notably we would certainly want to react against any increase in deflation risks.
He said the Fed is also watching the debt crisis in Europe and the fiscal clip here at home for any possible damage to the economic recovery and that that.
Might require more stimulus as well now on the Libor scandal that senators.
Cap -- via Fed Chairman with questions about that including whether or not he felt.
That the Libor is now accurate and reliable he said.
He doesn't have full confidence that it is because reforms suggested by the New York fed.
Back in 2008 were not adopted by British bankers actually -- back you.
Doesn't inspire confidence does it all right -- bugs me she.
