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(AMM) NY copper futures boosted by Fed plan to keep interest rates low

February 24, 2010 - 22:14 GMT Location: NEW YORK

KEYWORDS: copper futures , Ben Bernanke , Federal Reserve , Comex , LME

New York copper futures edged higher on Federal Reserve Chairman Ben Bernanke's testimony to Congress, erasing earlier losses in London trade.

Red metal prices reacted favorably to news that the Federal Reserve will maintain its low interest rate policy in the near term. The fragile U.S. economic recovery needs super-low interest rates, which encourage business and consumer demand, Bernanke told the House financial Services Committee in his semi-annual testimony, noting that job market weakness will remain a factor of concern in the next two years.

"The FOMC (Federal Open Market Committee) continues to anticipate that economic conditions?including low rates of resource utilization, subdued inflation trends and stable inflation expectations?are likely to warrant exceptionally low levels of the federal funds rate for an extended period," Bernanke said in prepared remarks.

"Once you start raising interest rates you start putting the breaks on the...

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