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BERNANKE proposes no new steps to boost economy – AP

August 26, 2011

Bernanke proposes no new steps to boost economy

By PAUL WISEMAN and MARTIN CRUTSINGER

Aug 26, 1:13 PM EDT

JACKSON HOLE, Wyo. (AP) — Federal Reserve Chairman Ben Bernanke leaned on Congress on Friday to do more to promote hiring and growth, or risk delaying the economy’s return to full health.

Bernanke proposed no new steps by the Fed to boost the economy. But at a time when Congress has been focused on shrinking long-run budget deficits, he warned lawmakers not to “disregard the fragility of the current economic recovery.”

Bernanke, who spoke at an annual economic conference in Jackson Hole, left open the possibility that the Fed will take further steps to strengthen the economy. He said its September policy meeting will be held over two days, instead of just one, to allow for a “fuller discussion.”

But analysts said the speech provided no assurances of any new help from the Fed.

“He appears to be saying that the Fed has largely played its part and that the politicians need to step up their game,” said Paul Dales, senior U.S. economist at Capital Economics.

Stocks fell after the speech was released but then recovered. The Dow Jones industrial average rose about 150 points in early-afternoon trading as traders responded to Bernanke’s judgment that the job market and the economy would return to full health in the long run.

via Daily Record | Morris County NJ | AP Wire.

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