Bernanke says European woes might require Fed to act

Ben Bernanke, chairman of the U.S. Federal Reserve, told the House Budget Committee that private demand is sustaining the economic recovery, although it isn't as strong as he would like. He also said the European debt crisis could threaten the recovery and might force the Fed to take further action. Bernanke did not give any indication that the central bank will back away from its pledge of keeping interest rates low for an "extended period." He also urged lawmakers to devise a plan for reducing the deficit.

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