Bernanke calls for new monetary stimulus package

City A.M. Reporter
US Federal Reserve Chairman Ben Bernanke said high unemployment and low inflation point to a need for a further easing of US monetary policy, but said policymakers were still weighing how aggressive they should be.

"There would appear – all else being equal – to be a case for further action," Bernanke said in remarks prepared for delivery to a conference sponsored by the Boston Federal Reserve Bank.

Bernanke said a prolonged period of high unemployment could pose a risk to the recovery's sustainability and said the low level of inflation meant the risk of a dangerous downward slide in prices was greater than desirable.