Bernanke Defends Fed's Asset Purchases

Federal Reserve Chairman Ben S. Bernanke defended the central bank's unprecedented asset purchases, saying they are supporting the expansion with little risk of inflation or asset-price bubbles.

"We do not see the potential costs of the increased risk- taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery," Bernanke said today in prepared testimony to the Senate Banking Committee in Washington. "Inflation is currently subdued, and inflation expectations appear well anchored."

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