Chairman Ben Bernanke is proposing no new steps by the Federal Reserve to boost the economy, while hinting that Congress may need to act to stimulate hiring and growth. Bernanke says while record-low interest rates will promote growth over time, the weak economy requires further help in the short run. He is speaking at an annual economic conference in Jackson Hole, Wyo. His speech follows news that the economy grew at an annual rate of just 1% this spring and 0.7% for the first six months of the year. Only slightly healthier expansion is foreseen for the second half.
Bernanke says he’s optimistic that the job market and the economy will return to full health in the long run. Stocks fell lower after the speech was released. The Dow had been down about 78 points, about 0.7%, shortly before 10 a.m. The loss quickly increased to 145 points. In his speech, Bernanke left open the possibility that the Fed will take further steps to strengthen the economy. He says its September meeting will be held over two days instead of just one.
