Economic conditions should “warrant exceptionally low levels of the federal funds rate for an extended period,” Federal Reserve Board chairman Ben Bernanke planned to tell Congress yesterday, while adding that as the economy expands monetary policy will tighten.

“The [Federal Open Market Committee] anticipates that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. In due course, however, as the expansion matures the Federal Reserve will need to begin to tighten monetary conditions to prevent the development of inflationary pressures,” according to text of testimony Bernanke planned to tell the House Committee on Financial Services.

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