Bernanke doesn't announce any specific policy actions at this speech, but did say that we wouldn't rule out further asset purchases. He spends considerable time defending the Fed's policies thus far and the good that QE has done (in his view!). Interestingly, however, Bernanke mentions that "QE may impair the functioning of some securities markets". He also expended considerable energy in fretting the slowness of the recovery and expressed "grave concern" over the stagnating labour market. All in all, the kneejerk reaction is one of "risk off" (equities off, USD up) as this puts absolutely nothing new or surprising on the table. Recall that next week is full of important US data. (ISM's and employment report.) More comments to follow....