Federal Reserve

Ben Bernanke Defends Federal Reserve Efforts on Economy

Says there's room to do even more.

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Federal Reserve Chairman Ben Bernanke, in a letter responding to questions posed by U.S. Rep. Darrell Issa (R., Calif.), chairman of the House oversight committee, defended actions the Fed has taken to support the economy and said there is room for the Fed to do more.

"There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery," Mr. Bernanke wrote in a letter dated Aug. 22, a copy of which was obtained by The Wall Street Journal.

The Fed's "Operation Twist" program—buying long-term Treasury bonds and selling short-term securities—is still "working its way through the economic system," Mr. Bernanke said. The program was first launched in September 2011 and in June 2012 was extended through the end of this year.