Are Markets Becoming Too Dependent On The Fed's Quantitative Easing Measures?

Category: Markets / Finance / May 22, 2013 3:59PM EDT

Jonathan Corpina, senior managing partner with brokerage firm Meridian Equity Partners Inc., weighs in on Federal Reserve Chairman Ben Bernanke's testimony before the Joint Economic Committee of Congress on Wednesday. Bernanke told Congress the Federal Reserve still needs to continue its stimulus efforts to avoid endangering the economic recovery, despite recent improvement in the job market.

Market professionals recently speculated that the Fed might be preparing to scale back its $85 billion a month of bond purchases after a Fed official last week commented that the central bank could begin easing up on its monetary stimulus this summer. However, Bernanke said that premature tightening would endanger the recovery, and that more progress is needed before a stimulus pullback.