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Bernanke Now Hints That Fed Could Undertake Another Stimulus

The dollar is falling after Federal Reserve Chairman Ben Bernanke says the central bank could provide more support for the economy if weak growth continues.

Bernanke says that support could include a third round of Treasury bond buying, also known as quantitative easing, which critics define as printing money.

In prepared remarks delivered before Congress on Wednesday, he warned that the Fed remains “prepared” to step in once again:

“Once the temporary shocks that have been holding down economic activity pass, we expect to again see the effects of policy accommodation reflected in stronger economic activity and job creation,” he said

“However, given the range of uncertainties about the strength of the recovery and prospects for inflation over the medium term, the Federal Reserve remains prepared to respond should economic developments indicate that an adjustment in the stance of monetary policy would be appropriate.”

Prominent analyst Simon Maughn Legendary investor Jim Rogers predicted another round of quantitative easing in interviews earlier this year.

“The bond market is going in one direction which is up-falling yields which is telling you quite clearly the direction of economic travel is downwards. Downgrades. QE3 (a third round of quantitative easing) is coming,” Maughn told CNBC in June. “The bond markets are all smarter than us, and that’s exactly what the bond markets are telling me.”

Rogers agreed: “They’re gonna bring [quantitative easing] back because [Bernanke will] be terrified and Washington will be terrified,” he said. “There’s an election coming in November 2012. Washington’s gonna print more money.”

But that policy has drastic consequences, including the devaluation of the dollar.

For example, the dollar dropped to 79.11 Japanese yen from 79.43 yen, but remained above a four-month low of 78.49 hit Tuesday.

The Associated Press contributed to this report.

Comments (44)

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  • Michael
    Posted on July 14, 2011 at 12:51am

    Is this why you are seeking to raise taxes? so that you can order another round of stimulus which will be used to bail out banks which will then end up going towards bonuses for the wealthy which will result in the purchase of more yachts and Bentleys. Naturally this will all be on the backs of the citizens who will have no say so in how tax dollars are being spent by a government that has zero regard for it’s citizens plight. Hi Bernanke, inflation is real and we are feeling it at the grocery store. Hi Barry, I really do want a job and am not trying to take yours, I just want to help you do your job well. I sure wish I knew how to get us on the same page because I would like to work again so that I can pay my taxes and my debt and be a contributing member of society again. The way TARP was spent last time was quite disappointing and you will have to forgive me for feeling once bitten twice shy like a jilted lover this go around.

    Report Post » Michael  
  • Mike_AYoungConservative
    Posted on July 14, 2011 at 12:09am

    Ugh, the reprocussions this has on our economy…. As a 22 year-old with a fresh 401K, I’m beginning to wonder if its even worth the effort…

    Report Post »  
  • 3katmomma
    Posted on July 13, 2011 at 10:42pm

    Before the first stimulus package, when all this trouble started, someone came up with a package that made sense. It went something like this: the government would send every american aged 18 and older a check for 125,000 to spend as they wished. (of course this money is taxable). This would result in people paying down their debts, making new purchases and, or puting it in the bank.
    Oh! but I forgot! according to the president, we‘re too stupid to know what we’re doing.

    Report Post »  
    • Goldmember
      Posted on July 13, 2011 at 10:57pm

      Fact! Obamy and company know exactly what they are doing. Fact! they can‘t believe after 3 Trillion the US hasn’t turned to anarchy. More to come.

      Report Post » Goldmember  
  • Maidoff101
    Posted on July 13, 2011 at 10:17pm

    Its more and more obvious there’s a purpose behind this madness. The Dems are speaking out of both sides of their mouths. Bernake said before QE1 He would never Quanttize the Debt, and now for 3rd time, here we go again, why? This is the “Fleecing of America” and Who is in charge?

    Report Post »  
    • KICKILLEGALSOUT
      Posted on July 13, 2011 at 10:44pm

      Of course they will have QEIII, the Global banking elite won’t be satisfied until they steal every penny from the American people and plunge us into slavery under their New World Order. It’s time for the American people to take back their country by force before it is too late! Whining, Complaining, Politicians they aren’t going to do anything. The only way to take our country back is like the Founded Fathers had to when they wanted to be free of the Tyranny of Government in the past and that was by the shedding of blood and war. Because the world is evil we will always go through these cycles, unfortunately the time coming sooner than we think here to reclaim our country. We need to get organized, prepare, come up with plans and strategize, form militias, recruit those in the military, form a pact that you will not continue to fight to defend a corrupted system and corrupt politicians and judges that are currently in power, we will fight to remove these evil people from our society that sue us when we try to enforce our laws, judges that twist our laws, politicians that don’t do what we elected them to do, Fed banking cartels operating outside of the law and stealing our life savings, illegal foreign invaders, corrupt foreign powers buying our country, these things must be stopped!

      Report Post » KICKILLEGALSOUT  
  • HerrBeck
    Posted on July 13, 2011 at 10:00pm

    How do we know he is going to do this? Has one of Rupert Murdoch’s News Corp “reporters” hacked into his cell phone? Why is that not a bigger story on this site? He is responsible for hacking into the phones of Americans, soldiers and their familes. We should revoke his American citizneship.

    Report Post » HerrBeck  
    • bigfatslob
      Posted on July 19, 2011 at 12:15pm

      Mr, TROLL, the story is based on a quote from Bernake himself, please GO BACK TO THE HUFFINGTON POST

      Report Post » bigfatslob  
  • Gypsy123
    Posted on July 13, 2011 at 9:54pm

    Obama needs more money to get re elected so he is wanting more stimulus to pay off more votes. Tax revolt time is coming

    Report Post » Gypsy123  
  • BeckaBrwnEyes
    Posted on July 13, 2011 at 8:41pm

    So, the first stimulus didn’t work. The second stimulus didn’t work. Am I to understand all it will take is just one more stimulus? One more to do what? Completely destroy my country? And, it is all so obvious – right in our faces. Just a full speed ahead desire to tear apart everything that makes America what she is…. was.

    Report Post »  
  • Hawke17
    Posted on July 13, 2011 at 8:38pm

    WE are lucky we have Bernanke, he saved the country in Sept 2008. Greenspan is an idiot ….when they asked for his advice in Sept 2008 he said the problem is an oversupply of houses, we should buy them all up and burn them ….Greenspan has been senile for a long time and told everyone to use your home equity to buy buy buy …the devaluation of the dollar is a good thing …. it makes exports cheaper … exactly what we need right now ……learn some economics people

    Report Post »  
    • Ira WIlson
      Posted on July 13, 2011 at 9:29pm

      Oh my goodness… ROFL !!!! You are absurd !!!!!

      Report Post » Ira WIlson  
    • bigfatslob
      Posted on July 19, 2011 at 12:18pm

      Mr. Troll, this QE1,2,3 is destroying the value of savers and 491ks. No interest is paid and already inflation is rearing its horrible head. Please return to Hufpo.

      Report Post » bigfatslob  
  • Viking64
    Posted on July 13, 2011 at 6:30pm

    “Hope and Change?”, you mean “Hype and Chains” This president and his entire administration need to be chained! Another stimulus to feed to the unions, the donators, banks, GE, etc. Oh let’s not forget his former employer “Lovely Acorn” Tell me any body you know who willingly spends ten times+ their budget and I will show you a alcoholic or severe crack head! They are systematically bringing down the US economy!

    Report Post »  
  • miles from nowhere
    Posted on July 13, 2011 at 6:30pm

    Well lets see if it failed the first time it will fail again, so I will do it again. Sounds just like Obama!

    Report Post »  
  • jaylew
    Posted on July 13, 2011 at 5:56pm

    I wish they would use another word besides “stimulus” for this sort of thing….because I’m just not feeling it.

    Report Post » jaylew  
    • Juan Gault
      Posted on July 20, 2011 at 4:19pm

      Doing the same thing,ova and ova,and expecting a different result, has a one word description……..insanity!!

      Report Post »  
  • gunnerinva1976
    Posted on July 13, 2011 at 5:37pm

    if another stimulus is handed out, I beleive we may see rioting in the streets

    Report Post »  
  • buster2
    Posted on July 13, 2011 at 5:02pm

    The banks, labor unions and others that donate big bucks to the Democrat election confers must need stimulating. Dumb and dumber doesn’t even begin to capture the incompetence or the deliberate destruction of the United States.

    Give every citizen of the U.S. a equal portion of this proposed new stimulus. At least the citizen could use it to pay bills for the growiing utilities, fuel and food.

    If there was someplace in the world to move to, I’d go. I don’t think anyone who grew up in the United States planned on living in a third world, socialistic country where the government decided everything for you.

    Report Post »  
  • JazzGuy
    Posted on July 13, 2011 at 4:53pm

    Holy bloody HELL… the stupidity fluorishes !! Like a bucket of midget-minded automatons, our government is knee-jerk-reacting once again, in the face of what? Bad economy? Poor ratings? The freakin’ 2012 ELECTION, for God’s sake??? Stop the world, I want to get off. Oh, but first, let me sell off ALL my mutual funds (e.g. my kids’ college money, my retirement etc etc) before he’s grabbed all that too. Hmm, what WOULD Hitler say if he were here right now…..

    Report Post » JazzGuy  
  • IMCHRISTIAN
    Posted on July 13, 2011 at 4:17pm

    Unions out of money already?

    Report Post »  
  • Lt_Taz
    Posted on July 13, 2011 at 4:06pm

    Another “Mental Midget” just one question, if brains were dynomite could Bernanke blow his nose?

    Report Post »  
    • quicker
      Posted on July 13, 2011 at 7:26pm

      If brains was gasoline he wouldn`t have enought to put in a piss ants motercycle to run around a bb

      Report Post » quicker  
  • Table Crumb
    Posted on July 13, 2011 at 3:52pm

    Member banks borrows money from the Fed window at a very low interest rate (0.01%) and they turn around and lend that money to the government (T-bills). They get a nice 1% return on the interest paid for the money the loaned to the Government. They (the banks) call the T-bills that they now have on their books, “profit”.

    It’s not real…

    Short-term and maybe medium-term investments in stocks may yield some profit, but only in the short-term and maybe medium-term.

    What happens when that artificial earnings or so-called profits by these banks
    dries up? Are they really lending the money to the market? Are they reall lending the money now as they should be? The credit crisis that we experienced recently; is that potentially coming back, therefore the reason for more QE? Did the credit crisis really ever went away?

    Where is the increase in industrial production?
    Retailers are still struggling aren’t they?
    Developers are still foreclosing all over the country aren’t they?
    Home prices haven’t stabilized yet, have it?
    Is there a real underlying fundamental growth taking place?

    The story continues in this direction….

    Report Post »  
  • CulperGang
    Posted on July 13, 2011 at 3:48pm

    Stimulus=Wealth of the nation transferrfed over to the bankers.

    Report Post » CulperGang  
  • CulperGang
    Posted on July 13, 2011 at 3:43pm

    Now it makes sense why Sen. Mitch McConnell(R-Kentucky) made the strangest suggestion to the GOP.

    “Why not give the power to raise the debt ceiling over to Obama.”(Huff pwtew Post) (Alex Jones is just talking about on radio…wow what timing)……..

    WTF is that RINO thinking??? McConnell just showed to the US HE IS a GLOBALIST!!!

    I have been saying for months where is our PROTECTION on the HILL from Crime Inc. Obama???
    I answered my own question time and time again….THEY are with them…NOT with We the People.

    Well, you are looking at a TRAITOR in the GOP….McConnell.

    If Obama can raise the debt ceiling BERNANKE(globalist bankers) GETS HIS WISHES. Obama and mcConnell kick the USA further into the debt abyss to destroy our culture.

    TRAITORS!!!!! Globalist are traitors to We the People.

    Obama threatens to not send out the SS on 8/4/2011…if he doesn’t get more$$$$$$$$$$$$$

    THERE IS NO MONEY IN ‘SOCIAL SECURITY’ there is nothing set aside…….it is in the same coffer as a slush fund…the one the Obama and Pelosis and the Hill uses as their personal welfare.
    Ponzi scammers. How about getting rid of the pork. How about getting rid of useless commissions of bureaucracies???

    Report Post » CulperGang  
    • BlazingBlonde
      Posted on July 13, 2011 at 8:57pm

      Funny how all that works, We are out of money, need to borrow, then give it back to the economy where it does NOTHING but go to FO0′s (Friends of 0bama)
      The left is yapping at the right saying “Where were you when Bush was spending all that money”>>> all the while shoving each other out of the way to get on .the inside of who’s foo on the hand out list.. all the while crying about Bush spending while applying the tourniquets to pop a vein for more 0bamaheroin.
      SO.. if we have to raise the debt ceiling because we may default (out-o-money) then where is this new stimulous money coming from???
      Bueller
      Bueller
      ?

      Unreal!

      Report Post » BlazingBlonde  
  • kentuckypatriot
    Posted on July 13, 2011 at 3:17pm

    Glenn warned us of this a few months back. Hey trolls……….. Beck is right again! How’s that hope and change workin for ya?

    Report Post » kentuckypatriot  
  • Table Crumb
    Posted on July 13, 2011 at 2:50pm

    When the dollar is devalued, everything eventually will cost more, even gas…this is economics in the real world 101.

    They get to spend what they ‘will spend’ and we get to “pay” for what they spend.

    They create a $1 bill out of thin air for the treasury to borrow and in return they make a percentage on the interest when the treasury pays them back. The treasury is the taxpayers vault so that means we pay that money. The federal reserve made hundreds of millions, billions, etc., out of nothing. Get it?

    On top of that our dollar is devalued and so we pay more for everything else we buy.

    Look at the CPI and PPI numbers. Inflation is here. Transitory bullcrap…inflation is not going away anytime soon.

    Report Post »  
  • EqualJustice
    Posted on July 13, 2011 at 2:37pm

    OMG! Here it comes AGAIN. Where will they get the money? Take it from Seniors and the Military? No, and this must be why they need that new CREDIT CARD? ENOUGH already. STOP SPENDING AND CUT CUT CUT the waste and fruad and illegal spending. How about stop the money for the FAKE BLACK FARMERS first and other STUPID programs like that?? Seniors were actually FORCED to pay for their own SS benefits so how can they even threaten to touch that money?

    Report Post » EqualJustice  
  • Diablo4965
    Posted on July 13, 2011 at 2:23pm

    Seems they feel they haven’t done enough to destroy the country!

    Report Post » Diablo4965  
  • Ed Salazar
    Posted on July 13, 2011 at 2:16pm

    Now that would be GREAT. Since it worked the first time, we now know stats don’t lie. This is also why unemployment nugged upward after the stimulus funds dried up. We need to keep these stimulus goiing until these criminal big corporations open up there hiring. My top ten company is making more profit in the last year then in there 150 year history yet they don’t want to help the economy……..

    Report Post » Ed Salazar  
  • lylejk
    Posted on July 13, 2011 at 2:02pm

    The FEDs going to steal even more of my money in my savings. Gas prices will easily reach $5/gal and even more of the poor will find them out of a home. Does this idiot even realize that what he has already done is contributing to the mess we are now in. High stock prices is going to be the only outcome and that’s useless if there are no jobs; only the fatcats will get the money. Tired of this nonsense. Stop the printing presses already. :)

    Report Post » lylejk  
    • Ed Salazar
      Posted on July 13, 2011 at 2:22pm

      Wrong, Gas prices are controlled by speculation. This is proven fact, although this site I see is full of mis information.

      Report Post » Ed Salazar  
    • xoke
      Posted on July 13, 2011 at 3:51pm

      Ed, speculation plays a role in gas prices…but speculators speculate both up and down. It works both ways. Same with all commodities, from orange juice to wheat, from oil to gold. The bond market is speculation right now…are they responsible for the devaluation of the dollar?

      It is not a proven fact. It is one of many contributing factors to the price of oil, but not the primary driver.

      Report Post » xoke  
    • bu11Dawg
      Posted on July 13, 2011 at 3:53pm

      @ED SALAZAR -
      While I agree that speculation causes gas prices to go upward, you cannot defend QE3. This is REALLY simple. Even a liberal should be able to understand this…

      If I take one dollar, rip it in half and tell you that I have 2 dollars, would you believe me?

      Report Post » bu11Dawg  
    • Psychosis
      Posted on July 13, 2011 at 3:55pm

      @ ed

      you are so wrong

      and since i doubt you could comprehend an explanation, im not going to waste my time ………maybe someone else here is willing to hold your hand and explain it to you

      Report Post » Psychosis  
    • Lloyd Drako
      Posted on July 13, 2011 at 4:26pm

      It’s not only fat cats who own stocks. Millions of people do, directly or through their 401ks. These people will be thrilled when their portfolios get bigger, only to be disappointed when inflation eats all their gains.

      Report Post » Lloyd Drako  
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