The Wall Street Journal Markets Alert
Bernanke Says Bond-Buying Plans Not ‘A Preset Course’
Employing his clearest language yet, Federal Reserve Chairman Ben Bernanke said that reductions of the central bank’s $85 billion-a-month bond-buying program are “by no means on a preset course” and that the Fed could leave the program intact—or even increase purchases—if warranted by a worsening jobs market, inflation that refuses to move back toward the Fed’s 2% goal, or too-tight financial conditions.
On the other hand, if the economy performs better than the Fed expects, the central bank could start pulling back on bond purchases more quickly, Mr. Bernanke said in remarks prepared for delivery to the House Financial Services Committee on Wednesday.
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