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It contributed to the Fed's decision to ease interest rates.
The Bank of Canada is expected to ease interest rates next month.
The Reserve Bank appears in no hurry to ease interest rates despite rising expectations of a rate cut before Christmas.
Mr. Bernstein also warned investors against expecting the Federal Reserve to ease interest rates quickly to help stocks.
Faster productivity growth could offer a way out of that conundrum, allowing the central bank to ease interest rates while simultaneously curbing inflation.
The government will loosen fiscal policy and lean on the formally independent central bank to ease interest rates ahead of parliamentary elections in mid-2015.
Similar(39)
The Fed aggressively eased interest rates further in an emergency move Tuesday.
Both the Federal Reserve and the European Central Bank have eased interest rates aggressively in recent weeks to stave off such threats.
"They still have some room to grow; most people think the Fed hasn't stopped easing" interest rates, he said.
In fact, Alan Greenspan, chairman of the Federal Reserve Board, eased interest rates last week to offset the tightening in commercial loans.
In that case, he said, the Federal Reserve Board might have to consider easing interest rates to keep the situation from growing more grave.
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