New York (FT) -- Ben Bernanke, Federal Reserve chairman, said on Friday that weaker-than-expected consumer spending growth and a "depressed" housing market had slowed the pace of the US recovery and promised that the central bank was ready to take "unconventional" steps to stimulate the economy if needed.
In a speech at a gathering of central bankers in Jackson Hole, Wyoming, Mr Bernanke acknowledged that the pace of economic growth had been "less vigorous" than the Fed was expecting and that the pace of the labour market's recovery had been "painfully" slow.
Mr Bernanke's remarks came after a sharp downward revision to second-quarter gross domestic product, which was held back due to a surge in imports. The Fed chairman said that the US central bank was surprised by the "sharp deterioration" in the US trade balance, but discounted it as the result of temporary and special factors.
The Fed chairman defended the central bank's surprise decision earlier this month to keep the size of its balance sheet constant and said the Fed was prepared to take "unconventional" measures to stimulate the economy if the outlook darkens. CNN
