Investing.com - Janet Yellen can be expected to do all she can to ensure a "more robust recovery" if confirmed as the next Federal Reserve chief, current Chairman Ben Bernanke said Tuesday in the U.S. at the National Economists Club annual dinner.
Bernanke said the Federal Open Market Committee is in agreement that USD85 billion a month in bond purchases has aided recovery and that even when tapering begins interest rates will likely remain near zero "well after" the FOMC's 6.5% unemployment threshold is crossed.
"The target for the federal funds rate is likely to remain near zero for a considerable time after the asset purchases end, perhaps well after the unemployment threshold is crossed and at least until the preponderance of the data supports the beginning of the removal of policy accommodation," he said, adding that economic data will be key for tapering purchases.
"If these views are supported by incoming information, the FOMC will likely begin to moderate the pace of purchases," he said.
Bernanke said the Federal Open Market Committee is in agreement that USD85 billion a month in bond purchases has aided recovery and that even when tapering begins interest rates will likely remain near zero "well after" the FOMC's 6.5% unemployment threshold is crossed.
"The target for the federal funds rate is likely to remain near zero for a considerable time after the asset purchases end, perhaps well after the unemployment threshold is crossed and at least until the preponderance of the data supports the beginning of the removal of policy accommodation," he said, adding that economic data will be key for tapering purchases.
"If these views are supported by incoming information, the FOMC will likely begin to moderate the pace of purchases," he said.