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Bernanke: Fed Helped Economy

Gives forceful defense of controversial policies.

Federal Reserve chairman Ben Bernanke forcefully defended the Fed’s controversial actions in a highly anticipated speech Friday morning. Speaking in Jackson, Wyo., Bernanke reviewed the actions of the Fed during and since the financial crisis and concluded that Fed action, including unconventional actions like the buying of long-term Treasury debt, had been effective and could have added as many as 2 million jobs. Bernanke also identified three factors holding the economy back: a sluggish housing sector, cutbacks in government spending, and uncertainty generated by the European financial crisis. Bernanke also indicated that the Fed may be preparing to implement new, unconventional policies and aid “as needed.”