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As a result, the stock market , which had been well into its third consecutive strong rally,pared gains as traders weighed where the Fed stands on theeconomy's late-spring slowdown. "Boy, that was anti-climactic," Pierpoint economist Stephan Stanleysaid. "There was absolutely nothing in terms of a policysignal...no different than what he might have said at any pointover the last few years." Bernanke told a congressional panel that the central bank is"prepared to take action" if needed to boost the U.S. economy, butmade no specific commitment to more easing. Instead, the Fed leader said the economy continues to grow at amoderate pace but faces challenges from the jobs market as well asthe debt crisis in Europe. Overall, the remarks offered little change from the statements hehas made over recent months that more quantitative easing is possible but not certain and will depend on how growth occurs. "The situation in Europe poses significant risks to the U.S.financial system and economy and must be monitored closely,"Bernanke said. "As always, the Federal Reserve remains prepared totake action as needed to protect the U.S. financial system andeconomy in the event that financial stresses escalate." There was some speculation, though, that Bernanke was being coy. Few in the market had expected him to deliver a firm commitment toanother round of easing. But remarks from San Francisco FedPresident and Bernanke confidante Janet Yellen on Wednesday indicated the central bank is weighing a move. Bill Gross, co-CEO of bond giant Pimco, said on Twitter that the"Bernanke/Yellen tag team opens door to more QE" for which heplaced a 60 percent chance. "Bernanke doesn t appear to want to commit to further quantitativeeasing in front of the audience," said Andrew Wilkinson, chiefeconomic strategist at Miller Tabak in New York. "His words are clear and...the economy is not growing fast enoughto deliver the Fed s dual mandate." The Fed next meets on June 19-20. As he also has in the past, Bernanke delivered a stern warning forWashington to act more aggressively on debt reduction and fiscalresponsibility. "At best, rapidly rising levels of debt will lead to reduced ratesof capital formation, slower economic growth, and increased foreignindebtedness," he said. "At worst, they will provoke a fiscalcrisis that could have severe consequences for the economy." Bernanke's speech comes with the U.S. economy at a crossroads. Recent data has indicated weakness in employment and production aswell as factory orders and housing. Perhaps more importantly for the Fed chairman, the stock market,until the recent three-day rally, had been in a strong selloffsince early May. Bernanke views the market as the deliverymechanism for the "wealth effect" he has trumped relative to Fedpolicy. Bernanke spelled out three objectives for Congress: to put thebudget on a "sustainable long-run path"; to avoid the "fiscalcliff" that would come with automatic tax increases and spendingcuts that would occur if Washington fails to reachdeficit-reduction goals by the end of 2012; and to use tax policyto grow the economy. "Although we cannot expect our economy to grow its way out offederal budget imbalances without significant adjustment in fiscalpolicies, a more productive economy will ease the tradeoffs facedby fiscal policymakers," he said. He said Congress has a number of options it can use to promotebudget stability. "I'd be much more comfortable if Congress would take some of thisburden from us and address those issues," Bernanke said during aquestion-and-answer session. We are high quality suppliers, our products such as Windows 8 Product Key Sticker Manufacturer , Windows 8 Product Key Code Manufacturer for oversee buyer. To know more, please visits Windows 8 Product Key Code.
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