However, some experts believe that there's no more room for new, effective monetary policies. "Unfortunately, the Fed doesn't have any rabbits to pull out of the hat to magically re-ignite economic growth. It is doing what it can (and that will probably mean more quantitative easing at some point), but its prime ammunition has already been used," Nigel Gault, chief U.S. economist at IHS Global Insight, wrote in a commentary today.
Whatever one might read into Bernanke's remarks, the stock market clearly felt some reassurance. After dropping by nearly 200 points shortly after this morning's open, the Dow Jones Industrial Average rallied quickly after Bernanke's remarks, regaining all ground it lost earlier in the day and then some.