2/10/2010

U.S. Federal Reserve Chairman Ben Bernanke will release his carefully crafted explanation of how the central bank plans to withdraw fiscal stimulus. Fed officials said the tightening will begin with a modest increase to the federal-funds interest rate, but they emphasized that interest rates will remain low for quite a while. The Fed plans to use different approaches to dry up excess liquidity and not rely entirely on interest rates. "We're in a different situation than ever before, and the tools we are using are entirely new," said former Fed Governor Lyle Gramley.

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