Chairman Ben Bernanke said Wednesday that the U.S. economy still needs help from the Federal Reserve’s low interest rate policies.
Bernanke told the National Bureau of Economic Research that because unemployment remains high and inflation is below the Fed’s target, the policies are still necessary. He also said the economy is being held back by higher taxes and federal spending cuts.
“If you put all of that together, you can only conclude that highly accommodative monetary policy for the foreseeable future is what is needed for the U.S. economy,” Bernanke said. Bernanke’s comments were his latest effort to stress that the Fed will continue to stimulate the economy.News Tribune news services