The U.S. economy continues to face "numerous difficulties," include persistent strains in financial markets, declining house prices and rising prices of oil and food, Federal Reserve Chairman Ben Bernanke said on Tuesday.
"The U.S. economy and financial system have confronted some significant challenges thus far in 2008," said Bernanke in a written testimony to the Senate Banking Committee.
"The effects of the housing contraction and of the financial headwinds on spending and economic activity have been compounded by rapid increases in the prices of energy and other commodities, which have sapped household purchasing power even as they have boosted inflation," he said.
"Accurately assessing and appropriately balancing the risks to the outlook for growth and inflation is a significant challenge for monetary policy-makers," said the central bank chief.
Source:Xinhua
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