Bernanke, who addressed an economic conference in Cambridge, Massachusetts, on Wednesday said the Fed needed to keep a stimulative monetary policy in place given the low level of inflation and a 7.6 percent unemployment rate that "if anything overstates the health of the labour market."
"The overall message is accommodation," he said. A "highly accommodative policy is needed for the foreseeable future."
"Several members judged that a reduction in asset purchases would likely soon be warranted," the minutes of the June 18-19 meeting said. Even so, "many members indicated that further improvement in the outlook for the labour market would be required before it would be appropriate to slow the pace of asset purchases."
Financial markets see-sawed after the release of the minutes as investors tried to gauge the likelihood of a near-term pullback in the Fed's bond purchases. But stocks strengthened in after-hours trade and U.S. Treasuries rose after Bernanke reiterated the need for monetary policy accommodation for the foreseeable future and cast doubt over the strength of the U.S. labour market.
Source: Reuters
