What can the Fed do next?

Andrew Milligan, head of global strategy at Standard Life Investments, scrutinises Ben Bernanke's Jackson Hole speech.

The mountain resort of Jackson Hole has been used for meetings of central bank governors since 1978. Few have attracted as much attention as the recent speech given by Ben Bernanke, the Federal Reserve Chairman. Against the backdrop of 20% declines in share prices, safe haven flows pushing government bond yields to generational lows, and business surveys suggesting imminent recession in the world’s largest economy, what could Bernanke do to calm down nerves? There are dangers with the media building up such events, making them more important than they really are. It should be remembered ...