The U.S. economy is on the mend, but conditions have not improved enough for the Federal Reserve to scale back support measures, the nation's top central banker told Congress on Wednesday.
Bernanke offered no hints of a change to the Fed's conditional pledge to keep interest rates near zero through late 2014, nor did he signal that another round of asset purchases is imminent.
He warned of lingering weakness in the jobs market, and downplayed figures showing the U.S. economy unexpectedly grew at an annual rate of 3 percent in the final quarter of 2011.
"The recovery of the U.S. economy continues, but the pace of expansion has been uneven and modest by historical standards," Bernanke told the House Committee on Financial Services.
The nation's unemployment rate hovered around 9 percent for much of last year but has moved down appreciably since September, reaching 8.3 percent in January.
However, "the job market remains far from normal," he warned. "The unemployment rate remains elevated, long-term unemployment is still near record levels, and the number of persons working part time for economic reasons is very high."
Bernanke said the sluggish housing market market remains a drag on overall economic activity.
Even though houses are more affordable as a result of falling prices and historically low mortgage rates, tight credit conditions and concerns about the jobs market have prevented a more robust housing recovery, he added.
In a sign that the Fed will not move from January's ultra-low interest rate pledge, Bernanke was unconcerned that easy monetary policy and economic growth could spark a sudden jump in consumer prices.
Subdued level of inflation should persist despite a "temporary" rise in gasoline prices, he told lawmakers.
Fed policy makers expect that economic activity will pick up gradually as headwinds fade, supported by a continuation of the highly accommodative stance for monetary policy.
Bernanke's remarks came hours after the European Central Bank's released the results of its latest program to extend three-year collateralized loans to European financial institutions.
The European Central Bank allocated 529 billion euros ($713.4 billion) in its second auction of three-year loans to the European banking sector.
The long-term refinancing operations, along with progress made in ending the Greek sovereign debt crisis, are among the "constructive policy actions" taken in Europe.
He urged European officials to follow through with concerted action concerted action to boost growth and competitiveness in a number of countries.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.