Bernanke: Fed Ready to Act

The economic forecast is grim and unemployment rates are skyrocketing, but Federal Reserve Chairman Ben Bernanke has stressed that the Fed is “entirely prepared to take additional balance sheet actions” if economic recovery is in danger. In other news, stocks surged to record heights for 2012. For now, the Federal Reserve Market Committee has decided not to continue efforts to spur growth, with Bernanke arguing that it would be “unwise” to risk boosting inflation rate with further action. The FOMC announced on Wednesday that it will conclude its latest effort to spur growth in June and will wait to see whether the economy picks up steam, though it acknowledged that it will likely weaken further before it gains strength.