YOUR FRIENDS' ACTIVITY

    Bernanke To Reveal Fed's Policy Decision

    Investors in the US are hoping the chairman of the Federal Reserve will announce new measures to boost its struggling economy later.

    In a much anticipated announcement at 1730 BST, Ben Bernanke will reveal if the central bank is to launch a fresh bout of quantitative easing.

    He will also disclose whether the Fed will extend its near-zero interest-rate policy, following a two day meeting of its Open Market Committee in Washington.

    A third round of stimulus - known as QE3 – would see the bank create new money to buy bonds in the hopes of kick-starting the economy by keeping interest rates low.

    Pressure has been building for further action by the Fed after economic growth in the US sank to a sluggish annual pace of 1.7% in the second quarter of the year.

    Hopes of a fiscal boost were raised two weeks ago when Mr Bernanke promised to do more to stimulate the economy if necessary.

    "The Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labour market conditions in a context of price stability," he told central bankers in Jackson Hole, Wyoming.

    He also expressed "grave concerns" over the US' high levels of unemployment which could "wreak structural damage on our economy that could last for many years".

    The minutes of the Fed's last meeting also hinted at further stimulus, with policy members saying that action "would likely be warranted fairly soon".

    Related stories: