Bernanke: Fed to help restore strong growth

Federal Reserve Chairman Ben Bernanke said the US central bank would spare no effort to boost disappointingly weak growth and lower unemployment, and he downplayed concerns about inflation.

While the Fed chairman did little to disturb expectations of a further easing of monetary policy when officials meets on September 20-21, he offered no details of steps the Fed might take, disappointing some investors.

"The Federal Reserve will do all it can to help restore high rates of growth and employment in a context of price stability," Bernanke told the Economic Club of Minnesota.

In what could be taken as a bid to quell concerns among some of his colleagues that a further monetary easing could spark inflation, Bernanke said a rise in prices this year would likely to be transitory.

"We see little indication that the higher rate of inflation experienced so far this year has become ingrained in the economy," he said.

U.S. stocks fell, the dollar extended gains against the euro and Treasury debt prices rose on Bernanke's comments.

"The markets are going to be disappointed in this and concerned that the Fed is only acknowledging the problems without offering any real solutions," said Joseph Trevisani, chief market analyst at FX Solutions in Saddle River, New Jersey.

A widening debt crisis in Europe and collapse in consumer and business confidence in the United States has raised concern the U.S. and global economies could slide back into recession.

So stark is the recent deterioration in the global economic recovery that the political debate in Washington has veered in only six weeks from a preoccupation with how to cut US debts to a renewed urgency on lowering unemployment.

President Barack Obama is scheduled to lay out a jobs package worth more than $300 billion later on Thursday, and job creation was a key theme for Republican presidential hopefuls at a debate late last night.