US Federal Reserve to keep interest rates low

US Federal Reserve Chairman Ben Bernanke told Congress, the central bank will keep interest rates low for "an extended period". He said it's warranted by a weak job market and low inflation.

Bernanke offered a relatively somber assessment of the U.S. economy before lawmakers. The Fed chief said job losses were abating, but that the recession had taken a toll on American workers.

Bernanke said that the U.S. central bank's policy-setting committee will continue taking extraordinary stimulus measures for some time.

Ben Bernanke, US Federal Reserve Chairman, said, "Some recent indicators suggest the deterioration in the labor market is abating: Job losses have slowed considerably, and the number of full-time jobs in manufacturing rose modestly in January. Initial claims for unemployment insurance have continued to trend lower, and the temporary services industry, often considered a bellwether for the employment outlook, has been expanding steadily since October. Notwithstanding these positive signs, the job market remains quite weak, with the unemployment rate near 10 percent and job openings scarce."

Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington, Wednesday, Feb. 24, 2010, before the House Financial Services Committee hearing on the Semiannual Monetary Policy Report to the Congress. (AP Photo/Manuel Balce Ceneta)