WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke on Monday said the central bank will monitor the sliding U.S. dollar but pledged anew to keep interest rates at record-lows to nurture the economic recovery.
In remarks to the Economic Club of New York, Bernanke engaged in a delicate dance.
He made clear that Fed policymakers will keep rates at super-low levels. Yet through his words, Bernanke is also trying to bolster confidence in the dollar without actually raising rates, a move that could short-circuit the fragile recovery.
Low interest rates could put additional downward pressure on the dollar. And economists say a free-fall in the value of the dollar, while unlikely, can't be entirely dismissed. Still, low rates are needed to encourage consumers and businesses to spend more and fuel the economic rebound.
That's the dilemma for the Fed.
"We are attentive to the implications of changes in the value of the dollar," Bernanke said in rare remarks about the greenback. The Fed, he said, will continue to "monitor these developments closely."
Commodity prices -- such as oil -- have risen lately. That pickup likely reflects a revival in global economic activity and the recent depreciation of the dollar, Bernanke said.
Nordic Festival Puts North Korea in Spotlight
'Rumor Has It' Adele's Rolling in the Grammys
Grohl, Grammy Nominees Cut Up on the Red Carpet
Greece Passes New Austerity Deal Amid Rioting
Coroner: Houston Autopsy Results Weeks Away
Raw Video: Greek Rioting Ahead of Austerity Vote
Raw Video: Child Rescued After Kosovo Avalanche
Pop Music Superstar Whitney Houston Dies at 48
Whitney Houston's Church Mourns Her Passing
Reaction to Houston's Death at Clive Davis Party
79 Turtles Seized at Shanghai Airport
Severe Cold Wreaks Havoc in China
Fuel Removal Under Way on Capsized Italian Ship
Police: Houston Found Dead in Her Hotel Room
Paul Suffers Narrow Loss to Romney in Maine
Palin Brings Anti-Washington Message to CPAC
Obama Scraps Birth Control Mandate
Navy Names Ship for Gabrielle Giffords
Uzbek Man Pleads Guilty in Plot to Kill Obama
Marines: No Punishment for Nazi-like Flag
