Bernanke: Fed will keep eye on sliding dollar
Ben Bernanke
Federal Reserve Chairman Ben Bernanke on Monday said the central bank will keep a close eye on the sliding U.S. dollar even as he pledged anew to keep interest rates at record-lows to nurture the economic recovery.
dollar
 In remarks to the Economic Club of New York  Bernanke engaged in a delicate dance.
 He made clear Fed policymakers will keep rates at super-low levels. Yet through his words  Bernanke is also trying to bolster confidence in the dollar without actually raising rates  a move that could short-circuit the fragile recovery.
 "We are attentive to the implications of changes in the value of the dollar " Bernanke said in rare remarks about the greenback. The Fed  he said  will continue to "monitor these developments closely."
 Although commodity prices -- such as oil -- have risen lately  that pickup likely reflects a revival in global economic activity and the recent depreciation of the dollar  Bernanke said. Even so  the Fed chief predicted inflation probably will remain "subdued for some time."
 That gives the Fed leeway to hold rates at record-low levels for an "extended period " he said  repeating a pledge made at the Fed's meeting earlier this month.
 Bernanke predicted the U.S. economy should continue to grow next year  but he warned of "important headwinds" that will restrain the recovery  including a weak job market and tight credit for small businesses and households.
 Those forces "likely will prevent the expansion from being as robust as we would hope " he said.
 Bernanke said the rebound reflected more than "purely temporary factors" and predicted growth would continue into next year.
 But he cautioned there is uncertainty about how the economy will evolve next year  and warned that "future setbacks are possible."
 Bernanke said the unemployment rate "likely will decline only slowly" if economic growth remains "moderate" as he expects.
 Because jobs are likely to remain scarce for some time  consumers -- critical shapers of overall economic activity -- will be cautious about spending  Bernanke said.
 Banks dealing with the fallout from soured commercial real estate loans also could slow progress on efforts to get credit flowing more freely again  the Fed chief said. And credit difficulties will limit the ability of some businesses to expand and hire.
 "Overall a number of factors suggest that employment gains may be modest during the early stages of the expansion " Bernanke said.
[TGT] on Monday said the central bank will keep a close eye on the sliding U.S. dollar even as [TGT] pledged anew to keep interest rates at record-lows to nurture the economic recovery.
dollar
 In remarks to the Economic Club of New York  [TGT] engaged in a delicate dance.
 [TGT] made clear Fed policymakers will keep rates at super-low levels. Yet through [TGT] words  [TGT] is also trying to bolster confidence in the dollar without actually raising rates  a move that could short-circuit the fragile recovery.
 "We are attentive to the implications of changes in the value of the dollar " [TGT] said in rare remarks about the greenback. The Fed  [TGT] said  will continue to "monitor these developments closely."
 Although commodity prices -- such as oil -- have risen lately  that pickup likely reflects a revival in global economic activity and the recent depreciation of the dollar  [TGT] said. Even so  the Fed chief predicted inflation probably will remain "subdued for some time."
 That gives the Fed leeway to hold rates at record-low levels for an "extended period " [TGT] said  repeating a pledge made at the Fed's meeting earlier this month.
 [TGT] predicted the U.S. economy should continue to grow next year  but [TGT] warned of "important headwinds" that will restrain the recovery  including a weak job market and tight credit for small businesses and households.
 Those forces "likely will prevent the expansion from being as robust as we would hope " [TGT] said.
 [TGT] said the rebound reflected more than "purely temporary factors" and predicted growth would continue into next year.
 But [TGT] cautioned there is uncertainty about how the economy will evolve next year  and warned that "future setbacks are possible.[TGT] said the unemployment rate "likely will decline only slowly" if economic growth remains "moderate" as [TGT] expects.
 Because jobs are likely to remain scarce for some time  consumers -- critical shapers of overall economic activity -- will be cautious about spending  [TGT] said.
 Banks dealing with the fallout from soured commercial real estate loans also could slow progress on efforts to get credit flowing more freely again  the Fed chief said. And credit difficulties will limit the ability of some businesses to expand and hire.
 "Overall a number of factors suggest that employment gains may be modest during the early stages of the expansion " [TGT] said.