Bernanke explains US economic struggles

18 July 2012

Domestic difficulties and the ongoing eurozone debt crisis are combining to restrict US economic growth.

That is according to Ben Bernanke, chairman of the Federal Reserve (Fed), who has admitted America's financial prospects are bleak at present due to the general uncertainty in the global economy.

Speaking at the Senate Banking Committee, Mr Bernanke explained that policymakers at the Fed are constantly considering different methods of stimulating the country's financial system.

However, he indicated that measures such as the implementation of more quantitative easing (QE) are not imminent as officials plan to maintain a watching brief in the near future.

Mr Bernanke insisted that, as was made clear by the committee at its June meeting, the Fed is "prepared to take further action" due to the "slow pace of progress in reducing unemployment and the downside risks to economic growth".

However, it appears that policymakers are willing to hold fire on any decisions for the foreseeable future.

By Asim Shah

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