Ben Bernanke offers no sign of stimulus but says Fed will step in if needed
Source: The Guardian
Federal Reserve chairman Ben Bernanke on Thursday stopped short of signalling any new action to help the fragile US economy, saying the recovery was continuing but warning of potential pitfalls ahead.
"Economic growth appears poised to continue at a moderate pace of over coming quarters," Bernanke told the congressional joint economic committee. He said the Fed "remains prepared to take action as needed to protect the US financial system and economy."
Bernanke was speaking after disappointing news in the jobs market. Last week the labor bureau reported that the US added just 69,000 jobs in May as the unemployment rate rose to 8.2%, the first rise in nine months.
The news and continuing fears that Europe's economic woes are dragging on the US economy have led to speculation that the Fed will step in with a third round of financial stimulus known as quantitative easing, especially after officials hinted more action was being considered.
Read more: http://www.guardian.co.uk/business/2012/jun/07/ben-bernanke-stimulus-fed-economy