Bernanke suggests that the FED is weighing further expansionary policy

On Friday, Chairman of the Federal Reserve Ben Bernanke suggested that the FED would do more to pump money into the economy and to keep interest rates down. While the FED is traditionally concerned about inflation, those concerns have been assuaged by small increases in the core-CPI. So, many are convinced, including Bernanke, that even if the results are minimal, the FED must do all it can to counter any deflationary trends and to encourage lending and investing to reduce the unemployment rate. Bernanke did suggest, though, that the unemployment rate has almost everything to due with demographics and trends, and that the FED can only play a limited long-term role by making monetary adjustments. The article also highlights the impact that quantitative easing - purchasing US treasuries - will have on the world market for US goods. Many people are concerned that this will weaken the dollar too much, and destabilize international trade relations and agreements.