US Federal Reserve Chairman Ben Bernanke has paved the way for a new round of quantitative easing, saying more action is necessary to aid the struggling US economy."There would appear, all else being equal, to be a case for further action," the state-run BBC quoted Bernanke as saying on Thursday.
The US central bank is likely to support a move to acquire US government bonds in order to lower borrowing costs at its next meeting on November 3.
The new plan has been devised because of unemployment and low inflation, Bernanke said.
The Fed chairman has not given any indication as to the size or timing of any new quantitative easing, but did confirm it was expected to target US government bonds.
In order to alleviate the US economy's problems, the US government has taken drastic measures, including buying up billions of dollars of US mortgage debts ... READ MORE
