Markets volatile on Bernanke's mixed messages Mr Bernanke told US congressmen that the American economy was in better health than a year ago, but warned that a sudden end to the fiscal stimulus package would jeopardise that recovery. The Fed will keep its short-term interest rate close to zero for a "considerable time" and has no immediate plans to wind down the quantitative easing programme, under which the central bank buys $85bn (£57bn) in bonds a month, he said. However, the shot of confidence was short-lived, as markets speculated that the Fed may start winding down its quantitative easing programme if the economy continues to improve. Although Mr Bernanke said the Fed is not "automatically aiming towards a complete wind down" and could still expand the scheme, he added that it could start reducing the artificial stimulus "in the next few meetings" if economic data continue to be healthy. The FTSE 100, which opened down ahead of Mr Bernanke's testimony to the congressional joint economic committee, rose sharply in late afternoon trading to a high of 6875.62. It closed up 36.40 points at 6,840.27, just 90 points shy of the record close of 6930.2 it reached during the 1999 dotcom boom. Ian Williams, of stockbroker Peel Hunt, said the FTSE 100 could break through its record closing high "in the next week or two." Meanwhile in New York, the Dow Jones Industrial Average rose from 15,387.58 to a new high of 15,542.4, before falling back to 15,356.17 in afternoon trading. The Standard & Poor's 500 index climbed from 1,669.16 to as high as 1,687.18, also setting a fresh record, but dropped to 1,659.69 as markets digested Mr Bernanke's remarks. His comments came as Sir Mervyn King, the Governor of the Bank of England, who is soon to retire, called for a £25bn increase in quantitative easing, but was outvoted for a fourth consecutive month. Members of the UK's Monetary Policy Committee voted 6-3 against expanding the programme from its current level of £375bn.