Bernanke backs qualitative easing

US Federal Reserve chairman Ben Bernanke said there was a case for further monetary easing given high unemployment and low inflation, but he offered no details on the central bank’s next step.

It was the most explicit signal yet from Bernanke that the US central bank is likely to ease as soon as its next meeting in November. He also suggested the Fed could indicate a willingness to hold interest rates low for longer than currently expected. “There would appear – all else being equal – to be a case for further action,” Bernanke said at a conference sponsored by the Boston Federal Reserve Bank. Stocks edged higher and the dollar hit an eight month low against the euro as investors bet any further asset purchases would help the economy, but would require more money to be printed, debasing the greenback.