Bernanke also signaled that the Fed will consider further action if the economy continues to worsen. The Fed’s policy committee “will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in a context of price stability,” he said.
The warning to lawmakers came as the Fed chief acknowledged the weak recovery and delivered a dour outlook on the economy.
“Overall, the recovery from the crisis has been much less robust than we had hoped,” Bernanke said. He said that the Fed’s policymaking committee “now expects a somewhat slower pace of economic growth over coming quarters” than it did in June, when it last released formal projections.
And of course, Republicans want to make sure that the Fed can do absolutely nothing.
A Republican leader in Congress was poised on Tuesday to introduce legislation to strip the Federal Reserve of its mandate to ensure full employment, the latest bid in Washington to clip the central bank's powers.
Yes, why should the government do anything about unemployment right now?
Time to Tweet For Jobs, folks. Let the GOP know the real jobs in danger are their own.