The Fed chief was speaking in a video conference on monetary policy on Friday 19 October. His comments come on the heels of speculation that the Fed will cut interest rates at the end of October to boost the economy.

Because the public still has a lot to learn about the economy in order to form its perceptions, there is "reason for the central bank to strive for predictability and transparency and avoid overreacting to current economic information", he said.

Bernanke added: "Uncertainty about the effect of policy on the economy may imply that policy should respond more cautiously to shocks than would be the case if this uncertainty did not exist."