24, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Federal Reserve Chairman Ben Bernanke reported on Wednesday. In his speech, Ben Bernanke reiterated that QE is connected with economic data. FOMC protocols showed that the council will discuss lowering in June, suggesting that the central bank will reduce the incentive.

What Ben Bernanke said was not what the market had expected. The Fed issued a rather mixed message to investors regarding when QE will come to an end. Bernanke commented on the situation as well as Dudley, Bullard and other members of the FOMC have done it before: the policy could go either way depending on how the economy develops.

Since Bullard, president of the Federal Reserve of St. Louis, noted that the Fed should "continue this QE program ", as it is the best policy option to stimulate a growth. Bullard added that he did not see a good case for narrowing the QE if inflation risks were rising.