WAshington, D.C., United States (4E) – US Federal Reserve chair Ben Bernanke told Congress on Thursday that the central bank was ready to act if it was necessary.
Bernanke was appearing before a House committee hearing on the long-term budget when he made the comments. He told the committee members that the Fed was still assessing whether the economy could continue to grow quickly enough to reduce the nation’s high unemployment rate without additional action by the Fed.
However, Bernanke did not give any indication that the central bank had already decided to take any action.
Indeed, he told the committee that the Fed had not yet determined whether economic growth was slowing or if new stimulus measures were necessary.
He did tell the committee that the decrease in job creation could be either a warning sign or merely a data quirk, because other economic indicators were showing steady, if small, gains. Nevertheless, he said that if creation of new jobs was indeed decreasing that it could serve as a reason to institute a new round of stimulus measures.
The central bank’s policy-making committee is scheduled to meet in two weeks.
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