Federal Reserve

Bernanke Defends Fed's Asset Purchases

Made the comments while testifying before the Senate Banking Committee

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Federal Reserve Chairman Ben S. Bernanke defended the central bank's unprecedented asset purchases, saying they are supporting the expansion with little risk of inflation or asset-price bubbles.

"We do not see the potential costs of the increased risk- taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery," Bernanke said today in prepared testimony to the Senate Banking Committee in Washington. "Inflation is currently subdued, and inflation expectations appear well anchored."