Bernanke Says Fed Prepared to Boost ‘Close to Faltering’ Growth

Federal Reserve Chairman Ben S. Bernanke said the central bank can take further steps to sustain a recovery that’s “close to faltering” and cautioned lawmakers against making changes in fiscal policy that harm growth.

The Fed can give more information about its pledge to keep interest rates low at least through mid-2013, reduce the rate paid on banks’ reserve deposits or buy more securities, Bernanke said today in testimony to Congress’s Joint Economic Committee in Washington, reiterating options he mentioned in July. He signaled that higher inflation this year won’t stop the Fed, saying it hasn’t become “ingrained” in the economy.