Mumbai: Federal Reserve chairman Ben Bernanke has sought a fresh round of government stimulus for the failed US banks even as he warned that the economy will not bounce back quickly even if confidence in the financial system returns.

While there has been a slowdown in consumer spending, business investment and the labour market, Bernanke said a further stimulus would be a good idea because the country risks continued economic weakness.

Bernanke's remarks, made before the House Budget Committee, come even as the Bush Administration has been cool to any extension of the relief package.

''With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate,'' Bernanke said in a prepared testimony.

The US economy has been hammered by a housing mortgage credit crisis that hit the broader financial market and the economy in general.

Falling demand and output are expected to shrink the US economy towards the year-end and the nation's unemployment rate could hit 7.5 per cent from the current 6.1 per cent or higher by next year.

Bernanke wanted the fresh stimulus to be well timed so as to quickly entice people and businesses to boost spending and buck up the economy.