Bernanke signals more QE for US

Federal Reserve chairman Ben Bernanke has given his strongest signal yet that he will begin another round of quantative easing in the US.

Bernanke said the aim of a second wave of QE would be to mimic the economic "benefits" of the UK programme. Speaking at the Federal Reserve Bank of Boston, Bernanke suggested the country should have an inflation target of around 2%. Currently it is 1.1%. To reach this figure a new round of economic stimulus through asset purchases could be on the way, he said, pointing to its success in the UK. Bernanke said: "A means of providing additional monetary stimulus, if warranted, would be to expand the Federal Reserve's holdings of longer-term securities. "Empirical evidence suggests ...