Bernanke wants more QE

Tim Wallace
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MARKETS rose on hopes of more quantitative easing (QE) yesterday after US Fed chairman Ben Bernanke said the recovery may need more support.

The central banker hinted at more money printing, arguing more action should be taken to push boost jobs.

“Despite the recent improvement, the job market remains far from normal,” he said. “Further significant improvements in the unemployment rate will likely require a more rapid expansion of production and demand from consumers and businesses, which can be supported by continued accommodative policies.”

Stocks rose on the speech, with the Dow Jones industrial average rising one per cent in the day, and the S&P 500 rose 0.99 per cent.

Positive housing data also helped, with pending home sales up strongly compared with February 2011, though they fell on last month.