The US Federal Reserve is no less committed to highly accommodative policy now that it has trimmed its bond-buying stimulus,Ben Bernanke said on Friday in what could be his last speech as Fed chairman.
Bernanke,who steps down as head of the US central bank at months end,gave an upbeat assessment of the US economy in coming quarters. But he tempered the positive signs in the housing sector,financial markets and fiscal policies by repeating that the overall recovery clearly remains incomplete in the United States.
But that decision did not indicate any diminution of (the Feds) commitment to maintain a highly accommodative monetary policy for as long as needed, Bernanke said at an American Economic Association forum in a snow-swept Philadelphia.
Looking into the years ahead,Bernanke said the central bank has the tools including adjusting the rate on excess bank reserves and so-called reverse repurchase agreements,or repos to return to a normal policy stance without resorting to asset sales.