Fed's Bernanke Offers No New Plans To Boost Economy

Federal Reserve Chair Ben Bernanke said Friday the central bank has no plans to announce new monetary policy measures to help boost economic growth, but rather called on Congress to act in shifting the nation’s fiscal direction.  

“Policymakers must work to promote macroeconomic and financial stability; adopt effective tax, trade, and regulatory policies; foster the development of a skilled workforce; encourage productive investment, both private and public; and provide appropriate support for research and development and for the adoption of new technologies,” Bernanke said at the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming.

The Fed chair warned that implementing such measures must be done carefully so as not to further disrupt a slow growing economy. Bernanke said that the pace of recovery has slowed as of late, explaining that “the recession was even deeper and the recovery weaker than we had thought.”

Bernanke said that the economy continues to recover at stalled pace and blasted Congress for an economically damaging summer of partisan gridlock over raising the nation’s debt ceiling.

“The negotiations that took place over the summer disrupted financial markets and probably the economy as well, and similar events in the future could, over time, seriously jeopardize the willingness of investors around the world… to make direct investments in job-creating U.S. businesses,” Bernanke said. 

Despite his acknowledgments of a slow pace recovery, Bernanke remained optimistic of the long-term economic growth, saying a full recovery is dependent upon actions taken by Congress, not the Federal Reserve. 

“I do not expect the long-run growth potential of the U.S. economy to be materially affected by the crisis and the recession if — and I stress if — our country takes the necessary steps to secure that outcome,” Bernanke said.