Bernanke says low rates to stay even though he sees green shoots

Record-low interest rates are still needed to rev up the economic recovery, Federal Reserve Chairman Ben Bernanke told the House Financial Services Committee earlier today.

Ben repeated the rationale behind the Fed's decision last week to hold rates near zero. He cited still-fragile economic conditions, and noted that inflation is low, which gives the Fed leeway to keep rates at rock-bottom levels. WHAT ABOUT THE GREEN SHOOTS BEN?

When asked about the Federal Reserve raising interest rates, Ben stated that would need to happen when the "expansion matures."

Bernanke said the term "extended period" isn't a fixed number of months. Rather, it is tied to how economic conditions evolve. If the economy were to rebound more strongly than anticipated, then the Fed would "respond appropriately" and start raising rates.

Bernanke said the housing market is "still quite weak."

Ben you included the following in your press release after your 3/16/2010 FOMC meeting: Economy and Labor Market: Economic activity has continued to strengthen and that the labor market is stabilizing.

What exactly are you saying Ben? Our still-fragile economic conditions continue to strengthen albeit the housing market is still quite weak however you are waiting for the stabilizing labor market to further expand in a mature manner?

Grandpa thinks you are telling white lies again...maybe you are waiting until your Wall Street buddies are able to make a few more billion as a result of borrowing 0% funds from your drive thru window??

I'll take the smirk as grandpa is on to something...