By Craig Torres and Shobhana Chandra
(Bloomberg)—Federal Reserve Chairman Ben S. Bernanke said the U.S. economy faces "formidable headwinds," including a weak labor market and tight credit that are likely to produce a "moderate" pace of expansion.
"The economy confronts some formidable headwinds that seem likely to keep the pace of expansion moderate," Bernanke, 55, said today in the text of remarks to the Economic Club of Washington. He said inflation remains "subdued" and might even move lower.
Stocks rose and the dollar erased its gain against the euro after Bernanke
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