Bernanke starts second day of testimony on policy

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Bernanke starts second day of testimony on policy
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) - Federal Reserve Chairman Ben Bernanke has begun his second day of testimony to Congress on Thursday on the economic outlook and the central bank's monetary policy stance. On Wednesday, Bernanke told the House Financial Services panel that the economy was sending "different signals," with a more rapid decline in the unemployment rate than might have been expected given the moderate growth rate. "It will be especially important to evaluate incoming information to assess the underlying pace of economic recovery," he said. Bernanke said that rising gasoline prices will move inflation up temporarily but will also reduce consumer purchasing power. The Fed chairman said little about the prospects for another round of asset purchases, or quantitative easing, causing some analysts to say it is less likely the central bank will conduct another round of purchases. Analysts said Bernanke will get a chance to refine his message when he testifies to the Senate Banking Committee.