WASHINGTON – In testimony before the House Financial Services Committee, Federal Reserve Chairman Benjamin S. Bernanke predicted moderate economic growth for the U.S. economy through the end of this year and into next, with inflation falling at the same time.
While he is attempting to guide the United States through its worst housing slump since 1991, he said inflation remains “the predominant policy concern” for the Fed.
The chairman did not leave the impression that the central bank will either raise or lower interest rates anytime soon, according to Bloomberg News. But he promised tougher rules on mortgage lending to protect consumers.
“We plan to exercise our authority under the Home Ownership and Equity Protection Act to address specific practices that are unfair or deceptive,” Bernanke said.
Sales of previously owned homes fell 0.3 percent to an annual rate of 5.99 million, due to high foreclosures and tightening in mortgage lending.
“The pace of home sales seems likely to remain sluggish for a time, partly as a result of some tightening in lending standards and the recent increase in mortgage interest rates,” said Bernanke.
