Bernanke Concerned About Jobs, Deficits

Despite recent improvement in the economy, the jobs picture has been slow to improve, Federal Reserve Board chairman Ben Bernanke said Wednesday, adding that the federal budget deficit also needs to be addressed.

Echoing comments he made last week before the National Press Club, Bernanke told the House Budget Committee the recovery seems to be strengthening despite the high unemployment rate.

“Although the growth rate of economic activity appears likely to pick up this year, the unemployment rate probably will remain elevated for some time,” he said, according to prepared text released by the Fed.

“In addition, inflation is expected to persist below the levels that Federal Reserve policymakers have judged to be consistent over the longer term with our statutory mandate to foster maximum employment and price stability,” he said.

“Under such conditions, the Federal Reserve would typically ease monetary policy by reducing its target for the federal funds rate. However, the target range for the federal funds rate has been near zero since December 2008, leaving essentially no room for further reductions.”

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