Bernanke offers no hint of further aid to economy

Federal Reserve Chairman Ben Bernanke says he’s surprised by how cautious consumers remain more than two years since the recession officially ended. But he offered no hints of further steps the Fed might take to try to boost the weak economy. Bernanke noted that several factors have kept consumers from spending more: from high unemployment and falling home values to still-heavy debt loads and higher gasoline prices. “Even taking into account the many financial pressures they face, households seem exceptionally cautious,” Bernanke said in a speech today in Minneapolis to the Economic Club of Minnesota. Bernanke says higher prices for gas, cars and other consumer goods were due, in part, to temporary factors, such as supply disruptions stemming from Japan’s earthquake and nuclear crisis. As those factors continue to ease, the Fed chief says, he expects inflation to moderate in the coming months. He reiterated that the Fed will consider a range of options at its next policy meeting Sept. 20-21. Some economists have said the Fed must take further steps to drive down long-term interest rates and help the economy avoid another recession.