Bernanke clear on no rate hikes until unemployment at 6.5%

When unemployment gets to 6.5% “and not before” and when inflation normalizes, we would consider raising rates.

• Blames unwind of levered bets on bonds for part of the drop in Treasuries
• If all goes as expected we will end QE buying in the middle of next year
• Ultimately we will allow purchases of assets to run off