Jobs market worries Fed
FEDERAL Reserve chairman Ben Bernanke told the US Congress yesterday he was willing to ease monetary policy even further if the economic recovery wobbles.
Bernanke said the Fed “needs to be taking steps to reassure the American people and the markets that our fiscal situation is going to be well controlled” during his twice-yearly report to the House.
He expressed concern that the private sector jobs market is not expanding fast enough to dent unemployment figures, which saw 464,000 new claimants last week, but said he expects moderate growth and subdued inflation over time.
Even with interest rates effectively at zero, Bernanke argued there is more the central bank can do to spur growth, including lowering interest rates on excess reserves or purchasing yet more debt, though he warned both options carry risks.