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                          Stock Markets Watch Bernanke

   by VOA News

   Top officials of the U.S. central bank are discussing how much and how
   soon to reduce their efforts to speed up economic growth.
   The chairman of the Federal Reserve will report their decisions
   Wednesday afternoon at 2:30 p.m.  Ben Bernanke has previously said the
   bank will cut stimulus efforts if  the unemployment situation improves
   further or inflation rises strongly.
   Stock markets have been very volatile as nervous investors try to guess
   what the Fed will do.
   Back in 2008, the Federal Reserve cut short-term interest rates to a
   record low level in a bid to boost economic growth.  When that produced
   disappointing results, the Fed added a complex program to cut long-term
   interest rates involving $85 billion a month in asset purchases.
   Stimulus efforts focus on low interest rates, because they make it
   cheaper for businesses to finance new equipment, expand factories, and
   hire new people.  But if a stimulus program goes on too long, it can
   overshoot and spark inflation.
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   [1]http://www.voanews.com/content/markets-watch-bernanke/1684856.html

References

   1. http://www.voanews.com/content/markets-watch-bernanke/1684856.html