Federal Reserve Chairman Ben S. Bernanke said the economy is barely expanding at a sustainable pace and that it’s possible the Fed may expand bond purchases beyond the $600 billion announced last month to spur growth.
Bernanke said fears of inflation are “overstated” and that keeping inflation under control isn’t a diminished priority for the Fed.
Without action by the central bank, the economy might have tipped into a period of deflation, or a prolonged drop in prices, Bernanke said.
Asia’s policy makers would be more likely to impose “soft” capital-control measures should the U.S. expand its bond-purchase program and increase the risk of fund flows into the region, according to Goldman Sachs Group Inc.
And gold rise to 1420 again. Buy on the rumour.