"It is clear that the recovery from the crisis has been much less robust than we had hoped," he said, according to prepared remarks.
"The incoming data suggest that other, more persistent factors also have been holding back the recovery," he added. As such, the Fed "now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the June meeting, with greater downside risks to the economic outlook."
"Unfortunately, the recession , besides being extraordinarily severe as well as global in scope, was also unusual in being associated with both a very deep slump in the housing market and a historic financial crisis," he said. "These two features of the downturn, individually and in combination, have acted to slow the natural recovery process."
"In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus," Bernanke said. "My FOMC colleagues and I will continue to consider those and other pertinent issues, including, of course, economic and financial developments, at our meeting in September and are prepared to employ these tools as appropriate to promote a stronger economic recovery in a context of price stability."
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