WASHINGTON (Reuters) – So much for the vaunted Federal Reserve consensus.
Fed Chairman Ben Bernanke made clear on Tuesday that tackling weak growth is the top priority for the central bank as he pushed aside an unprecedented level of internal dissent in promising low rates until at least mid-2013.
The central bank indicated it is ready to venture further into the unknown territory of ultra-cheap money to soothe nervous financial markets and spur growth. That was despite objections from some officials who worry such an approach risks fueling inflation down the road.
“Ben Bernanke has shown himself to be an extremely aggressive steward of the Fed,” said Robert Tipp, chief investment strategist for Prudential Fixed Income with $240 billion in assets under management.
“Given the Fed’s disappointment with the economic results, it wasn’t surprising to see Bernanke clearly go to the mat to get as much out of his committee as is possible at this point in time to help the economy,” Tipp said.
Because consensus behind policy decisions is valued at the Fed, such a high degree of opposition could yet signal a high bar to an even bolder move like bond-buying.
But on Tuesday the need to calm markets carried the day, an indication
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