Bernanke Defends Fed’s Actions

Ben Bernanke shot back Friday against major nations that have criticized the Fed’s latest policies to boost economic growth. In a speech in Germany, the Fed chief argued that the U.S. needs help from other nations to fight unemployment. The Fed’s decision to buy $600 billion in bonds with newly created money has drawn criticism not only from Republicans, but from Germany, China, Brazil, and other nations. Although Bernanke defended the Fed’s actions, he acknowledged that unemployment may still rise. On Wednesday, Bernanke met with members of the Senate Banking Committee to assure them he won’t allow inflation to rise excessively—though key Republicans said they remained unconvinced.