Fed ready to shield US economy against euro zone fallout: Bernanke
07 Jun 2012
US Federal Reserve chairman Ben Bernanke has cited significant risks to US economy from the euro zone crisis and said the central bank was ready to shield the economy against any financial troubles.
During his testimony before the US Congress today, the Fed chief said the central bank is closely monitoring Europe's debt and banking crisis.
"The Federal Reserve remains prepared to take action as needed to protect the US economy in the event that financial stresses escalate," Bernanke said in his prepared testimony.
He, however, did not elaborate on the possible action the Fed would take in the eventuality.
The Fed board is meeting on 19-20 June to decide on the course of action, he added.
Bernanke was less forthcoming than his deputy when he said, "Despite economic difficulties in Europe, the demand for US exports has held up well."
