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"The risk of deflation is higher than desirable", Mr. Bernanke told a Conference in the Boston Federal Reserve on Friday. Photo: AP

He said in a speech at the Federal Reserve Bank of Boston that the Fed must weigh the risks of a Council of Treasury-purchase program and how debt purchases could be stimulated.

"He was shot and his back against the wall, said Joseph Greco, CEO of Meridian Equity Partners in New York."I suspect that the world will begin to tighten their belts.?

Fed policy makers should widely announce a treasure purchase program for their next meeting for two days beginning on November 2.

The economy is growing at a pace "less vigorous we would like to", said Mr. Bernanke.

Unemployment, now at 9 6pc has been stuck by two digits for more than a year.Mr. Bernanke has indicated that the Fed fears that economic growth is likely to remain dull and unemployment will slowly diminish next year.

High unemployment is likely to keep careful consumers in their dépenses.Pour now, the Fed is more interested to see the prices increase - instead of autumn.

"The risk of deflation is higher than desirable", Mr. Bernanke said, adding: "" it seems - all being equal - a case for further give. ""

Boris Schlossberg, Director of research at GFT Forex New York said: "" map it maintains close to his chest is the size of the EQ contemplating .c ' is the ace up their sleeve that they want to surprise the market with so that they completely give up control of the policy. ""

The dollar fell more after his remarks, reaching parity with the Australian dollar, while gold doped supérieur.Cependant later recovered dollar return its losses to trade higher mid morning in New York, while gold has slipped.

Traders are also reacting in the consumer price that excluding the volatile food and energy prices were flat for a second month and the lowest consumer confidence.

World stock markets which had also edged back fell earlier, higher.

The Fed is weighing measures in an attempt to raise the expectations of the population that inflation will increase in the months to come .the ' hope is that this could make it more likely to raise prices, which would require consumers to make purchases, the inflation of lifting and to stimulate the economy of enterprises.

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