Bernanke Signals Fed to Maintain Stimulus Efforts

WASHINGTON (AP) -- Chairman Ben Bernanke is telling Congress that the U.S. job market remains weak and that it is too soon for the Federal Reserve to end its extraordinary stimulus programs.

In testimony to the Joint Economic Committee, Bernanke notes the economy is growing moderately this year and unemployment has fallen to a four-year low of 7.5 percent. Still, unemployment remains well above levels consistent with healthy economies. And Bernanke says higher taxes and deep federal spending cuts are expected to slow economic growth this year.

Bernanke says reducing the Fed's efforts to keep borrowing rates low would "carry a substantial risk of slowing or ending the economic recovery."

The Fed's low interest-rate polices have made borrowing cheaper and helped ignite a huge stock rally this year.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 22, 2013, at 4:40 PM, jargonific wrote:

    I hope MF will update this coverage to include other info. that sent markets downward today.

Add your comment.

DocumentId: 2446594, ~/Articles/ArticleHandler.aspx, 4/18/2014 11:26:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement