Uncharted Territory

Bernanke Hints at Unconventional Steps

Federal Reserve Chairman Benjamin Bernanke hinted that the Federal Reserve may be prepared to take unconventional steps to fight unemployment and inflation in a speech on Friday morning. In his speech at the Federal Reserve Bank in Boston, Bernanke told the audience that “unconventional policies have costs and limitations that must be taken into account in judging whether and how aggressively they should be used.” Bernanke’s biggest worry in his speech was the long-term effects of new government purchases with a low interest rate.