Fed Chairman Ben Bernanke made it clear that a third round of quantitative easing remains on the table, and that his main concern will be labor markets going forward. The Chairman recognized the risk posed by the European sovereign debt crisis, rejecting any possibility that Fed will step in to buy sovereign bonds, while telling reporters that he is in constant communication with ECB chief Mario Draghi. Bernanke also asked Congress for a little help jump-starting the economy, and told them to solve the so-called fiscal cliff problem before it gets worse.
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