Pace Of Job Growth A "Grave Concern" Says Bernanke

(Newsroom America) -- Federal Reserve Chairman Ben Bernanke says the United States is confronted by daunting economic challenges and in particular the labor market is "a grave concern."

But in a speech to the Federal Reserve Bank of Kansas City Economic Symposium in Wyoming, Mr Bernanke gave no specific indication that the Fed would take action at its mid-September meeting.

"As we assess the benefits and costs of alternative policy approaches, though, we must not lose sight of the daunting economic challenges that confront our nation.

"The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years," he said.

Mr Bernanke said over the past five years, the Federal Reserve has acted to support economic growth and foster job creation, and it is important to achieve further progress, particularly in the labor market.

"Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," he said.

Mr Bernanke's full speech can be read here. read here

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