Bernanke Affirms QE Pace While Dismissing Balance Sheet Concerns

Federal Reserve Chairman Ben S. Bernanke signaled the Fed is prepared to keep buying bonds at its present pace as he dismissed concerns record easing risks sparking inflation or fueling asset price bubbles.

“We do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery,” Bernanke said yesterday in testimony to the Senate Banking Committee in Washington. Inflation is “subdued,” and will probably stay at or below the Fed’s 2 percent goal, he said.