The U.S. economy faces “unusually uncertain” prospects, according to Federal Reserve Chairman Ben Bernanke, who added that the central bank stands ready to act in order to boost economic growth as needed.
“Even as the Reserve continues prudent planning for the ultimate withdrawal of monetary policy accommodation, we also recognise that the economic outlook remains unusually uncertain,” Bernanke said as quoted by the Guardian. “We will continue to carefully assess ongoing financial and economic developments, and we remain prepared to take further policy actions as needed.”
The official put mostly blamed the U.S.’s banking sector and its poorly performing loans for the slow economic growth.
On the international political scene, the U.S. said it will resume military ties with Indonesia as part of its efforts to reach out to the Asian country. After nearly 12 years, the U.S. will embark on a limited program of security cooperation initiatives with the Indonesian military, U.S. Defense Secretary Robert Gates said according to Agence France Presse.