The leader of the U.S. central bank has offered a general outline for the withdrawal of stimulus measures and the tightening of economic policy as the recovery gains momentum, according to The Wall Street Journal. On Tuesday, Federal Reserve Chairman Ben Bernanke fielded questions from lawmakers about a timeline for the withdrawal of stimulus measures. He answered that given stable inflation, quatntitative easing measures would be drawn down, “Once we see the economy is in a self-sustaining recovery and employment is beginning to improve.”
Bernanke remained committed to the $600 billion in bond-purchases planned for this year, asserting that the program has already begun boosting economic activity. The chairman was upbeat about the outlook, saying there was “increased evidence” of a sustained recovery for businesses and consumers, and the Fed is projecting for economic growth between 3.4% and 3.9% this year. Bernanke also offered his assurance that recent spikes in commodities prices would only translate to a “temporary and relatively modest” increase in U.S. consumer prices.
