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Friday
Oct152010

Bernanke: Federal Reserve Prepared to Take Further Action

Photo Courtesy - Federal Reserve System(BOSTON) -- The Federal Reserve seems prepared to do more to support the nation’s economy, which continues to grow at a sluggish pace.

“There would appear, all else being equal, to be a case for further action,” said Federal Reserve Chairman Ben Bernanke, speaking Friday in Boston.

“The means of providing additional monetary stimulus, if warranted, would be to expand the Federal Reserve’s holdings of longer term securities.”

Bernanke said he has two main concerns: joblessness and inflation.

“Overall economic growth has been proceeding at a pace that is less vigorous than we would like,” he said.

“With an actual unemployment rate of nearly 10 percent, unemployment is clearly too high, relative to estimates of the sustainable rate.”

Inflation, he told the conference, is too low.

“The short term real interest rate is too high given the state of the economy, and the risk of deflation is higher than desirable.”

Bernanke offered no timetable for any new steps.

Copyright 2010 ABC News Radio







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