Fed ready to act if financial stress escalates - Bernanke

    The United States economy should continue to expand at a moderate pace in the next few quarters but the situation in Europe poses significant risks and the Federal Reserve stands ready too take appropriate action, Chairman Ben Bernanke said.
     Speaking to U.S. lawmakers, Bernanke said U.S. households continue to spend, consumer sentiment is still noticeably higher than last year and demand for U.S. exports has held up.

   "Nevertheless, the situation in Europe poses significant risks to the U.S. financial system and economy and must be monitored closely. As always, the Federal Reserve remains prepared to take action as needed to protect the U.S. financial system and economy in the event that financial stresses escalate," he told the Joint Economic Committee.

     "Economic growth appears poised to continue at a moderate pace over coming quarters, supported in part by accommodative monetary policy" Bernanke said.