Ben Bernanke testified before Congress for the second day in a row, this time at the Senate Banking Committee. According to the Chairman the central bank is not prepared at this point to take further action, signaling that the Fed would wait to see how the economy progress before taking further actions to stimulate the economy.
Regarding inflation, Fed’s chairman mentioned that currently is higher and closer to the target the central bank has. The increase in prices is among the reasons why the Fed won’t start soon another round of QE. Also he affirmed that it may not be effective to increase asset purchases but current state of the economy forces the bank to examine way to stimulate growth if needed.
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