Federal Reserve Chairman Ben Bernanke defended the Fed's low interest rate stance Wednesday a day after its rate-setting Federal Open Market Committee left the key federal funds rate near zero and gave no indication it will be raising it anytime soon.
Bernanke acknowledged that holding rates too low too long would risk inflation, but made clear he thinks low rates are no needed to spur job creation and said the Fed must balance its goals of maintaining price stability and promoting maximum employment.
He suggested that inflation or a new asset price bubble are the least of the Fed's concerns at the moment, as he testified before the House Financial Services Committee.
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