Bernanke: Investors starting to get Fed's messageJuly 17, 2013 @ 8:23 am
WASHINGTON (AP) - Chairman Ben Bernanke says markets are more stable now that investors better understand the Federal Reserve's guidance on when it might start reducing its bond purchases.
"I think the markets are beginning to understand our message," he said at a House Financial Services hearing.
Last month stocks plunged after Bernanke said the Fed could reduce its $85 billion in bond purchases later this year if the economy improves. But stocks have since recovered after Bernanke and other Fed members have made clear that any change depends on the economy's performance, not a target date.
On Wednesday Bernanke told lawmakers the Fed's timetable is not on a "preset course."
Bernanke says it's important to provide guidance on the Fed's possible moves so that investors don't expect the purchases to continue indefinitely.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
New teacher confronted the teen who opened fire at Marysville-Pilchuck High School
Week In Photos
Great heights and breathtaking images from around the world this week
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.