Bernanke says there is no fixed schedule for Fed to slow bond purchases

WASHINGTON – Chairman Ben Bernanke says there is “no fixed schedule” date or “magic number” for when the Federal Reserve will start to slow or end its bond purchases.

The Fed said after its two-day policy meeting that it will continue to buy $85 billion a month in bonds while it awaits conclusive evidence that the economy is strengthening.

During a news conference after the meeting, Bernanke said the Fed could still move later this year. But he said that hinges on the economy showing sustained improvement. And he clarified that the program won’t necessarily end when unemployment reaches 7 per cent.

“What we will be looking at is the overall labour market situation, including the unemployment rate but other factors as well. There is no magic number,” Bernanke said.