Bernanke: Fed has 'made clear' it is ready to act (by Greg Robb)

WASHINGTON (MarketWatch) - Federal Reserve Board Chairman Ben Bernanke on Tuesday sketched out for members of Congress the weaker economic outlook, and stressed that the central bank is prepared to take further action to try to give the recovery a jolt. In testimony prepared for the Senate Banking Committee as part of his twice-per-year report on Fed monetary policy issues, Bernanke said that the reduction in the unemployment rate in coming months seems likely to be "frustratingly slow." Bernanke urged Congress to move right away to address the looming fiscal cliff, saying it threatened the recovery. He said that the European debt crisis was also a significant threat. "Reflecting its concerns about the slow pace of progress in reducing unemployment and the downside risks to the economic outlook, the FOMC made clear at its June meeting that it is prepared to take further actions as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," Bernanke said.