Bernanke makes case for Fed action
Federal Reserve Chairman Ben Bernanke testifies before the Joint Economic Committee on Capitol Hill -- May 5, 2009
TEXT OF STORY
BILL RADKE: Federal Reserve Chairman Ben Bernanke has seen the data and he spoke this morning in Boston. Reporter Janet Babin tells us he made the case
for more stimulus -- Fed-style.
JANET BABIN: Like most of the country, Bernanke's worried about the high unemployment rate. He says it poses a risk to economic recovery. The Fed chairman's also concerned about inflation being too low, and he says the Federal Open Market Committee -- the FOMC -- is ready to act to deal with low inflation.
BEN BERNANKE: The Federal Reserve remains committed to pursuing policies that promote our dual objectives of maximum employment and price stability. In particular, the FOMC is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation over time to levels consistent with our mandate.
This means the Fed is considering whether to buy more treasuries as a way to bring market interest rates lower, but the Fed is still weighing how aggressively to pursue these monetary policies.
I'm Janet Babin for Marketplace.