Fed chairman Bernanke 'wants steady job growth'

23 May 2013

Ben Bernanke thinks there needs to be a significant improvement in the jobs market before any paring back on bond purchases.

The Federal Reserve chairman noted until confidence is restored in the labour market, he is not minded to change course when it comes to providing a financial stimulus through the buying of bonds.

Mr Bernanke was giving evidence to the Joint Economic Committee of Congress yesterday (22 May) when he made his views clear on the matter.

The Fed got its third round of bond purchases underway in September of last year and since then, an average of 193,000 jobs have been added every month.

However, Mr Bernanke stated the sector is still weak and needs to show further recovery before the issue of continued bond buying can be addressed.

The official stated "high rates of unemployment and underemployment are extraordinarily costly" as they "impose hardships" on both individuals and their families.

By Asim Shah

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