Fed chief: More QE may be needed

3 November 2011

Further quantitative easing (QE) may be required in the near future in order to rejuvenate the ailing US economy, a leading official has stated.

Ben Bernanke, chairman of the Federal Reserve, has indicated that a third round of monetary stimulus may represent the country's only option as it continues its period of recovery in the aftermath of the recession.

Mr Bernanke was speaking following a two-day summit between senior American policymakers and explained that measures such as keeping interest rates at historic lows had also been discussed.

He went on to state that the process of enhancing the nation's economy once again is likely to be "frustratingly slow", with external factors like the ongoing eurozone debt crisis also playing a significant role at this time.

Meanwhile, the issue of slow economic growth is not just prevalent in the US, as a survey of experts by Bloomberg recently indicated that Britain is also set to face a very tough period in the near future.

By Claire Archer

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