Ben S. Bernanke has exemplified his power as Federal Reserve chairman by doing the unexpected: nothing! Bernanke reinforced his standing as the most activist Fed chairman in history, when the policy-setting Federal Open Market Committee yesterday refrained from reducing the $85 billion pace of its monthly securities buying, sending stocks to record highs and triggering the biggest rally in Treasuries since 2011 as investors repositioned for a more accommodating central bank. Bernanke said the Fed must determine its policies based on “what’s needed for the economy,” even if it surprises markets. The decision to abstain from tapering bond purchases underscores Bernanke’s willingness to do anything - even nothing - to carry out the Fed’s goal to encourage growth, a program which some say may continue into the third quarter of next year.

Source: Bloomberg / Businessweek / Reuters