Interest rate increase would not occur anytime soon. However, Bernanke said the reduction represents unanimity between the Committee members.
Bernanke also said inflation levels remain below the Central Bank’s objective of 2 percent and has remained subdued for some time now, and likely to move back towards the target of 2 percent, and added that the central bank will closely monitor inflation levels.
The Chairman also added that most FOMC participants expect inflation to rise, and also expect moderate growth in the upcoming period.
Bernanke said the Federal Open Market Committee may reduce the pace of bond purchases modestly later in 2013, and may end the purchases around mid-2014.
The reduction in stimulus will occur only if the economy shows signs of “substantial progress.”