Bernanke: Further US stimulus would be 'reckless'

Federal Reserve chairman Ben Bernanke has signalled the end of QE in the US, saying it would be "reckless" to pump further stimulus into the economy unless it sees a sharp deterioration.

At a Federal Open Market Committee press conference yesterday, Bernanke said he was encouraged by signs of improvement in the labour and housing markets, the increase in household spending and business fixed investment and a moderate expansion in the US economy. However, Bernanke warned although the unemployment rate had declined, it remained at elevated levels, and the housing market, while improved, was still depressed. Despite these concerns, he expected economic growth to remain moderate over the coming quarters, before picking up gradually. The Fed attributed the recent rise in i...