Fed to act if crisis deepens, says Bernanke

Federal Reserve chairman Ben Bernanke said late on Thursday the US central bank was ready to shield the economy if financial troubles mount but offered few hints that further monetary stimulus was imminent.

Federal Reserve chairman Ben Bernanke said late on Thursday the US central bank was ready to shield the economy if financial troubles mount but offered few hints that further monetary stimulus was imminent.

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The Fed was closely monitoring "significant risks" to the US recovery from Europe's debt crisis, said Bernanke, but struck a decidedly different tone from central bank's number two official, who argued in favour of monetary support on Wednesday.

"It doesn't really settle the debate," said Vassili Serebriakov, senior currency strategist at Wells Fargo. "There was some hope for more concrete signs, that further easing is forthcoming, and I don't think we got that today."