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Bernanke: Fed to Protect U.S. From Europe Debt Crisis


Originally published at Fox Business.

Europe's financial crisis still threatens the U.S. recovery, and the Federal Reserve will do everything it can to protect against damage to the economy, Fed Chairman Ben Bernanke said on Thursday.

Bernanke told Congress he was seeing signs that some of the uncertainty limiting U.S. business investment, including European banking woes, might be waning.

But he said it was far too soon to say whether the United States could remain unscathed.

"Risks remain that developments in Europe or elsewhere may unfold unfavorably and could worsen economic prospects here at home," Bernanke told the House of Representatives Budget Committee.

Bernanke defended the U.S. central bank's ultra-easy monetary policy from criticism from Republican lawmakers that it risked fueling inflation and undermining the dollar.

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