Fed Taking Wait-And-See Approach to Economy

Washington, DC, July 22, 2010--Federal Reserve Chairman Ben Bernanke said that even though the economic recovery has weakened, the Fed plans no new steps for now to try to strengthen it.

Bernanke said the Fed would consider action if matters worsened.

Bernanke acknowledged the recovery is fragile but downplayed the odds of a double-dip recession.

"If the recovery seems to be faltering, we have to at least review our options," Bernanke told lawmakers. But he said no further action is planned for now because the economy is still growing.

High unemployment is a drag on household spending, Bernanke said, although he believed both consumers and businesses would spend enough to keep the recovery intact.

The housing market remains weak and the overhang of vacant or foreclosed houses are weighing on home prices and home construction, he said.