The former head of the US Federal Reserve was in Sydney for the World Business Forum. Bernanke is well-known as the man who led the US Central Bank through the dark days of the global financial crisis; but he also implemented the controversial decision to stimulate the US economy via Quantitative Easing. We think that Bernanke was looking at the Australian situation, and hinting that perhaps QE might not be a bad idea to help push down the stubbornly high $A. We believe the dollar needs to fall further to between US65c and US70c. The RBA has already tried cutting rates, but it hasn’t done the job well enough. That means the RBA will eventually have to consider a form of QE. (VIEW LINK)