Federal Reserve chairman Ben Bernanke said today the US economy has been resilient in the face of credit market strains but faces risks.
"Financial market volatility and strains have persisted," Mr Bernanke said in testimony prepared for delivery to the congressional Joint Economic Committee.
"In addition, further sharp increases in crude oil prices have put renewed upward pressure on inflation and may impose further restraint on economic activity."
Mr Bernanke said that when Fed policymakers met on October 30-31st, they saw downside risks to economic growth and "important upside risks" to inflation, citing oil and other commodity price increases, and a drop in the dollar's value.
