Fed would start to tighten credit by boosting the interest rate it pays banks on money they leave at the central bank. However, any such changes would be months away.

The Federal Reserve pledged yesterday to hold interest rates at a record low to drive down double-digit unemployment and sustain the economic recovery. The Fed noted that the economy is growing, however slowly. And turning more upbeat, it pointed to a slowing pace of layoffs. Still, Fed Chairman Ben Bernanke and his colleagues gave no signal that they’re considering raising rates anytime soon. They noted that consumer spending remains sluggish, the job market weak, wage growth slight and credit tight. Companies are still wary of hiring, they said.

Federal Reserve Chairman Ben Bernanke warned yesterday that it’s too soon to know whether the economic recovery will last and again pledged to hold rates at record-low levels for an extended period.The Fed chief’s speech to the Economic Club of Washington made clear he thinks the economy will struggle even as it recovers from the recession. He said the economy confronts “formidable headwinds”—including a weak job market, cautious consumers and tight credit. Those forces “seem likely to keep the pace of expansion moderate,“ he said.The central bank has leeway to keep rates low because inflation is under control and is expected to stay tame because of the weak economy. Private forecasters fear that the recovery could fizzle late next year as government stimulus fades.Asked about prospects for such a double-dip recession, Bernanke said he could not guarantee it won’t happen. He stuck with his forecast for a moderate recovery but said a “vigorous snapback” is less likely.Bernanke said he expects modest economic growth next year. That should help push down the nation’s unemployment rate—now at 10 percent—“but at a pace slower than we would like,“ he acknowledged.Under one Fed forecast, the jobless rate would remain high next year—ranging from 9.3 percent to 9.7 percent. The Fed has warned that it could take five to six years for the job market to return to normal.To nurture the recovery, the Fed has kept rates at a record low, near zero, for a year. The central bank is expected to leave rates at those levels at its meeting next week. By doing so, the Fed hopes to entice people and businesses to boost spending, which would aid the recovery.When asked about rates, Bernanke joked: “Well, they can’t go much further down.“He went on to repeat the Fed’s pledge to keep rates at record lows for an extended period.“That remains where we are, but we’re going to have to continue to look at the economy,“ he said.

Retail sales rose in October but provided little hope for a robust holiday shopping season to invigorate the economic recovery. The figures, driven by a surge in auto sales, exceeded economists’ expectations—sales rose 1.4 percent last month, the Commerce Department said. But excluding the big rebound in auto sales, the gain was 0.2 percent. And the report included a sharp downward revision to sales in September.

Federal Reserve Chairman Ben Bernanke on Monday called for the United States to whittle down its record-high budget deficits and for countries like China to get their consumers to spend more, moves that would help combat skewed global trade and investment flows that contributed to the financial crisis.

Federal Reserve Chairman Ben Bernanke told a skeptical Congress that the central bank is “well suited” to oversee colossal financial companies whose failure could endanger the entire economy.

Federal Reserve Chairman Ben Bernanke said Friday a government program intended to spark lending to consumers and businesses is still necessary even with other emergency lending programs winding down as the economy recovers

Signaling confidence in an economic recovery, the Federal Reserve decided yesterday to stretch out the pace of a program intended to lower mortgage rates and prop up the housing market. Even so, rates on home loans are expected to remain low. With the economy on the mend, the Fed said it now plans to reach its goal of buying $1.45 trillion in mortgage-backed securities and debt by the end of March, rather than by the end of this year as originally scheduled. It is the second time since August that the Fed has opted to slow emergency programs designed to encourage spending and boost the economy.

Fed chief adds that although economy likely is growing now, that won’t be sufficient to prevent the unemployment rate from rising.

President Barack Obama announced Tuesday he wants to keep Ben Bernanke on as Fed chairman, saying he shepherded America through the worst economic crisis since the Great Depression.

Federal Reserve Chairman Ben Bernanke offered his most optimistic outlook since the financial crisis struck, saying the economy is on the verge of growing again. Speaking at an annual Fed conference, Bernanke acknowledged no missteps by the central bank in managing the worst crisis since the Great Depression.

With the economy turning a corner, Federal Reserve policymakers will consider whether some consumer-lending programs intended to ease the recession and stem the financial crisis should be extended. Fed Chairman Ben Bernanke and his colleagues opened a two-day meeting yesterday afternoon at which they are sifting through economic data and anecdotal information about how businesses and consumers are faring.

Treasury Secretary Timothy Geithner said a new agency focused on protecting consumers is needed because the mission currently is too scattered among various regulators.

Federal Reserve policymakers should decide this afternoon whether to hold a key bank lending rate at a record low. Fed Chairman Ben Bernanke and his colleagues opened a two-day meeting yesterday afternoon to take fresh stock of the nation’s fragile economic climate and to weigh in on whether existing programs to ease the recession should be tweaked.

Fed chairman gives Congress his most optimistic assessment of the country’s financial health since the recession struck with force last year.