July 10 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the U.S. needs very stimulative monetary policy for the foreseeable future.
“Highly accommodative monetary policy for the foreseeable future is what’s needed in the U.S. economy,” Bernanke said today in response to a question after a speech in Cambridge, Massachusetts.
Bernanke said low inflation and high unemployment mean the Fed needs to press on with its stimulus. He said he expects inflation to “come back up” closer to the central bank’s 2 percent goal.
U.S. stock futures rose and Treasuries erased losses after his unscripted remarks. Standard & Poor’s 500 Index futures expiring in September rose 0.7 percent to 1,656.4 at 5:25 p.m. in New York. The yield on the 10-year note was little changed at 2.63 percent at 5 p.m. in New York, after rising to as high as 2.68 percent following the release of the minutes.
Earlier today, the Fed released minutes of the Federal Open Market Committee’s June 18-19 policy meeting at which many officials indicated they want to see more signs employment is picking up before they’ll begin scaling back $85 billion in monthly bond purchases.
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