The Fed Chairman hinted at further measures to stimulate employment but is still playing his cards close to his chest as to when and how much:
“It is important to achieve further progress, particularly in the labor market,” Mr. Bernanke said. “Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”
via Bernanke Speech Makes Detailed Case for Fed Action – NYTimes.com.
In my opinion, Bernanke’s efforts have succeeded in stimulating the US stock markets and the USD value; but have failed to stimulate employment.
The dollar strength has discouraged industry from adding jobs, because the strong dollar makes international sales less competitive, so they need even greater efficiencies (more production with less labor).
Bernanke needs to lower USD value to make US exports more attractive in order for US industry to have the incentive to add people in order to produce more. It is clear that a lower dollar will cause lower capital availability for the markets.
We are about to find out if an abundant supply of cake can remain in the pantry whilst it is being eaten in a gluttonous fashion.
It looks like the Europeans are going to print more euros. I have no doubt that Chairman Ben plans to match them note-for-note.