Federal Reserve Chairman Ben Bernanke says the first step in tightening interest-rate policy could occur when the Fed stops reinvesting the proceeds of its bond holdings.
Bernanke would not be specific about when that might occur. He said it will depend on inflation and economic growth in coming months.
He said that step would be a relatively modest one. But it would constitute the Fed's first tightening because it would allow interest rates to creep up.