Stock markets around the world rose on Wednesday after Federal Reserve Chairman Ben Bernanke said the timeline for the United States central bank ending its stimulus program this year was not set in stone.
Reuters reported that European shares rebounded from early weakness that came after minutes from a Bank of England meeting showed all policymakers voted against extending the bank’s bond purchase program, which, like the Fed’s, has been widely credited with boosting equity gains this year.
The Fed recently said it would begin scaling back its accommodative policies later this year if economic growth meets its targets. While Bernanke reiterated in testimony to Congress on Wednesday that was still the case, he noted that asset purchases “are by no means on a pre-set course.”
In a question-and-answer session with the House Financial Services Committee, Bernanke said the Fed’s intention “is to keep monetary policy highly accommodative for the foreseeable future” because of high unemployment and below-target inflation.
The US dollar index .DXY rose 0.1 per cent against a basket of currencies, while the euro fell 0.2 per cent. The benchmark 10-year US Treasury note was up 10/32, with the yield at 2.4944 per cent.
Yields on the 10-year have jumped since May, when Bernanke hinted the Fed would slow its bond purchase program this year.