The Fed chairman suggests creating a program of buying U.S. Treasury bonds in an effort to drive down long-term interest rates. Still, it’s unknown how and when the central bank will take action.
By Don Lee, Los Angeles Times
October 15, 2010|7:34 a.m.
Federal Reserve Chairman Ben S. Bernanke on Friday laid out a case for the central bank to take further action to bolster growth, citing the risks of prolonged high unemployment and a U.S. economy slipping into a deflationary spiral.
In a much-anticipated speech in Boston, Bernanke did not spell out details of how and when the Fed would take action. But the first option that he mentioned was a program of buying additional assets, namely government bonds, in an effort to drive down long-term interest rates and stimulate economic growth.