Saturday, March 2, 2013

Premature Fed pullback could "short-circuit" recovery: Bernanke

Ben Bernanke, the chairman of the Federal Reserve, said on Friday that pulling back on aggressive policy measures too soon would pose a real risk of damaging a still-fragile recovery.

There has been some disagreement within the Fed of whether the U.S. central bank's bond-buying program, which is designed to push down long-term interest rates, should be phased out.

Fed Board Governor Jeremy Stein argued recently there were signs of overheating in certain financial markets and that the central bank should consider using monetary policy to address such risks if they persist.

http://www.reuters.com/article/2013/03/02/us-usa-fed-bernanke-idUSBRE92101Q20130302