Bernanke said that the Federal Reserve will not raise the interest rates

Ben Bernanke, has stated that the federal Reserve follows very closely the evolution of the dollar, after the considerable depreciation this currency suffered in the last weeks against other currencies. However, Bernanke, highlighted that the interest rates will continue low as the economy continues weak and the employment high. Ben Bernanke participated in a talk at the Economic Club of New York, where repeated the same speech about what will do the Federal reserve in the following months.

The president of the Federal Reserve, reiterated that although the economy has returned to the growth, ” the interest rates will continue low during a long period of time”.

In spit of the return to the positive data of the US GDP, the Unemployment is continuing to rise unstoppable, because the economic growth isn’t intense enough to create new jobs. Ben Bernanke remarked that there is still a problem with credit that ”together with the growing unemployment and a weak economy, will postpone the economic recovery”

Ben Bernanke is seeing big challenges for the incoming year, but signaled that ” some notable changes in the economic conditions, will turn the landscape of the monetary policy”. For the next year, Ben Bernanke sees ”a moderate growth, that will not be enough to reduce unemployment”, The current policy of the Federal reserve will be kept during some further months.

”We are watching the dollar from very close”

at the Same time, Ben Bernanke recognized that is worried with the dollar , He also stated that the Federal Reserve is following the value changes of the dollar and will design a policy to ”avoid risks” with the objective of promote employment and stability in prices”.

Ben Bernanke considers that the devaluation of the dollar as a mirror of the increase in prices of raw materials due to the improvement of the global economy.

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