Federal Reserve Chairman Ben Bernanke said on Thursday the central bank was ready to shield the economy if financial troubles mount, but offered few hints that further monetary stimulus was imminent.
Bernanke told Congress the Fed was monitoring "significant risks" to the U.S. recovery from Europe's debt and banking crisis closely.
But for financial markets hungry for clues about the prospect for a third round of Fed bond buys, Bernanke's testimony before the Joint Economic Committee would likely disappoint. Many economists at prominent banks are now expecting the Fed to take some new policy steps at its June 19-20 meeting.
"The Federal Reserve remains prepared to take action as needed to protect the economy in the event that financial stresses escalate," Bernanke said in his prepared testimony.
