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Fed-Bernanke: Economy still needs stimulus

July 11, 2013

Ben Bernanke said the Fed must press on with its stimulus to support the U.S. economy, even amid a heated debate over tapering the central bank’s quantitative measures. However, according to the FOMC minutes from the 18-19 June meeting, about half of the 19 participants in the committee pledged to halt $85bn in monthly bond purchases by year end.

The minutes also showed that many Fed officials wanted to see more signs that employment is improving, before trimming bond purchases known as QE3. Yields of the U.S. 10 year Treasury currently trades at 2.57%, down from the recent 2.74% high, as markets were expecting faster tapering.