He is confident that the $25 trillion market for dollar bonds is so large that it "should be able to absorb purchases and sales of large absolute magnitude with relatively modest changes in yields." Historically low long-term yields may influence the Fed's decision process towards more accommodation, Bernanke indicated. "To be consistent with a lower long-term real rate, the short-term policy rate might have to be lower than it would otherwise be as well."
Bernanke's outlook on future monetary policy was less confident. He said policymakers would have too monitor multiple signals from financial variables:
Ultimately, a robust approach to policymaking requires the use of multiple sources of information and multiple methods of analysis, combined with frequent reality checks. By not tying policy to a small set of forecast indicators, we may sacrifice some degree of simplicity, but we are less likely to be misled when a favored variable behaves in an unusual manner.