Bernanke: US economy still needs QE

Federal Reserve chairman Ben Bernanke last night moved to quell fears there will be a quick exit from QE in the coming months, arguing the US economy is not yet in a strong enough position to halt stimulus measures.

Minutes released last night from the Federal Reserve's June meeting indicated that around half of the 19 participants in the Federal Open Market Committee are in favour of drawing QE to a close. However, dovish QE members argued the employment market is not yet strong enough to bring the $85 billion in monthly bond purchases to an end. In a speech after the minutes were released Bernanke conceded that non-farm payrolls data needs to improve before the Fed begins to taper its monetary easing policy. For this reason Bernanke opted to vote in favour of continuing to pump QE into the U...