Key points from Bernanke's speech. On the economy

August 31, 2012

Stagnation in the labour market is a "grave concern" and that high unemployment may "wreak structural damage".

Housing, Europe, and the 'fiscal cliff' pose headwinds.

The labour market improvement has been painfully slow and that the economic situation is "far from satisfactory".

On quantitative easing, he says:

• He sees "strong" odds that QE "will make money" for taxpayers.
• The Fed would "act decisively" in removing stimulus.
• A big boost in QE may reduce confidence in smooth exit.
• QE may impair the functioning of the securities markets.
• The Fed will boost accommodation as needed for growth.
• Using nontraditional policy tools is challenging.
• QE mitigated the risk of deflation.
• QE provided "significant help for the economy".
• Gauging the impact of QE on the economy is inherently difficult.
• QE helped fuel sustained recovery in US stocks.