I figured all of our business readers out there would be interested in hearing about this Associated Press report. After all, the first stimulus dominated the national conversation for months.
Federal Reserve Chairman Ben Bernanke has announced that if need-be, a widespread buying of Treasury bonds could serve as a sort of small stimulus. He explained that it would really only be an option if the economy managed to pull a mini-Hindenburg between now and the end of the year, which it hopefully will not be doing:
“We have to keep all options on the table,” Bernanke told the House Financial Services Committee on the first of two days of Capitol Hill testimony. “If we get to the point where the recovery is faltering” and inflation is dropping toward zero, then the central bank would consider the additional stimulus options, he said.
Stocks jumped after Bernanke signaled the Fed’s willingness to take additional steps boost the sluggish economy. The Dow Jones industrial average rose more than 142 points in midday trading. Broader indexes also increased.
Your reaction to this news, gentle reader?
Photo of U.S. Federal Reserve Bank in Minnesota credited to drouu at http://www.sxc.hu/photo/619233