Bernanke says Fed is ready to act
Bernanke spoke to the Senate Banking Committee today to give a semi-annual update on Federal Reserve policy.
“Given that growth is projected to be not much above the rate needed to absorb new entrants to the labor force, the reduction in the unemployment rate seems likely to be frustratingly slow,” Bernanke said in a statement.
Bernanke said the Federal Reverve is considering purchasing more assets, reducing interest rates and altering its communication on the outlook of interest rates, according to Bloomberg.
The chairman also encouraged Congress to act, saying that the current fiscal climate and policies could lead to a shallow recession if tax increases and spending cuts continue to go into effect next year.