Washington - Two major US stock indices gained ground on Monday as a measure of manufacturing beat expectations and the head of the central bank emphasised commitment to the Fed's expansive policies.
Ben Bernanke, chairperson of the Federal Reserve, said he expected the recently announced decision for a third round of creating new money would be upheld even after the US economy gains strength.
"We expect that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economy strengthens," Bernanke said in his speech in Indianapolis.
The Fed chairman defended the decision against growing criticism, saying it would not lead to increased inflation.
The blue-chip Dow Jones Industrial Average rose 77.98 points, to 13,515.11. The broader Standard & Poor's 500 Index gained 3.82 points, to 1,444.49. The technology-heavy Nasdaq Composite Index dropped 2.70 points, to 3,113.53.
The US currency was trading at 77.6 euro cents and 78 Japanese yen.
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