Financial Times FT.com

Bernanke outlines Fed’s exit strategy

By Sarah O’Connor and Tom Braithwaite in Washington and Michael Mackenzie in New York and Dave Shellock in London

Published: July 21 2009 16:28 | Last updated: July 21 2009 22:32

Yields on US Treasuries fell sharply on Tuesday as Ben Bernanke outlined the Federal Reserve’s plan to extricate itself from its policy of near-zero interest rates but stressed the economy was too fragile to implement it soon.

Following increasing ­pressure from investors and ­politicians, the Fed chairman set out the central bank’s “exit strategy” for its policies, which have pumped huge amounts of liquidity into the economy and prompted fears about inflation.

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