Rare comments for Fed chairman:Bernanke reassures markets on dollar
The Federal Reserve is monitoring currency markets “closely” and will conduct policy in a way that will “help ensure that the dollar is strong”, Ben Bernanke said on Monday in rare comments on the US currency.
In remarks apparently aimed at reassuring markets and foreign governments that the central bank is not indifferent to the fate of the US currency, the Fed chairman said “we are attentive to the implications of changes in the value of the dollar”.
He added that the Fed “will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability” – and that in doing so it would support the value of the currency.
The dollar briefly jumped on his remarks, but then gave up some gains as traders questioned whether Mr Bernanke was prepared to go beyond talking in support of the currency.
For the Fed chairman to comment on currencies at all is highly unusual. By convention, the US Treasury Secretary is the sole US official who talks about the dollar.
Read the whole story at Financial Times
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