Bernanke: Fed will keep eye on sliding dollar
Bernanke: Fed will keep eye on sliding dollar, but pledges anew to hold rates at record-lows
Jeannine Aversa, AP Economics Writer
2:12 pm EST, Monday November 16, 2009
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke on Monday said the central bank will keep a close eye on the sliding U.S. dollar even as he pledged anew to keep interest rates at record-lows to nurture the economic recovery.
In remarks to the Economic Club of New York, Bernanke engaged in a delicate dance.
He made clear Fed policymakers will keep rates at super-low levels. Yet through his words, Bernanke is also trying to bolster confidence in the dollar without actually raising rates, a move that could short-circuit the fragile recovery.
Economists say a free-fall in the value of the dollar is remote but can't be entirely dismissed.
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