MW: Bernanke makes case for further cautious easing
BOSTON (MarketWatch) -- Federal Reserve Board Chairman Ben Bernanke on Friday said he thought the current high unemployment and low inflation environment would linger into 2011 and as a result there is a "case for further action" on the monetary policy front. Bernanke did not provide many details on the nonconventional policies that the Fed might take beyond saying the Fed might expand its holdings of longer-term securities. He backed a cautious approach, saying that the Fed has little experience in judging the economic effects of more asset purchases. Bernanke said another step the Fed might consider is to strengthen its pledge to keep rates low for an extended period. The Fed may stress that it expects to keep rates "low for longer than markets expect," Bernanke said.
