Bernanke Says Accommodative Policy Needed to Cut Joblessness
By Steve Matthews and Jeff Kearns - Mar 26, 2012 2:01 PM PT
The drop in unemployment may reflect “a reversal of the unusually large layoffs that occurred” in 2008 and 2009, and this process may now be over, Bernanke said in a speech today in Arlington, Virginia. Reducing the jobless rate further will probably require a quicker expansion of business production and consumer demand, which “can be supported by continued accommodative policies,” he said.
“The bar is, and has been, pretty low for additional action,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “The narrative is, while we have had some improvement, it is not that great, and it’s not clear it is going to last. Now is not the time to be thinking about taking back any of the accommodation.”
The Standard & Poor’s 500 Index (SPX) increased 1.4 percent to 1,416.51 at 4 p.m. in New York, returning to its highest level in almost four years. Treasury 30-year bond yields rose the most in a week as Bernanke’s comments boosted bets inflation will accelerate. The yield climbed three basis points, or 0.03 percentage point, to 3.34 percent.
read full atricle here Bernanke Says Accommodative Policy Needed to Cut Joblessness - Bloomberg