Bernanke: Economy not out of the woods yet

In a March 25, 2010 meeting, Bernake explained how the the economy is still in need for accomodative monetary policies and ensures the people that when the time comes, they have all the tools necessary to reverse the high monetary stimulus, and more importantly, counter inflation. In the last 18 months, the Fed has bought long term debt, treasuries, and some of the debt of mortgage finance firms like FreddieMac and Fannie Mae under the agreement to sell these mortgages to a third party and later rebuy them at a later point in time. There have been suggestions to remove mortgage backed securities entirely from the market; this has worried many because they believe that by ending such program there will be a rise in mortgage interest rates.