US Federal Reserve Chairman Ben Bernanke told Congress today that rising energy prices endanger a currently strong economy and left open the option of more interest rate increases.
"To support continued healthy growth of the economy, vigilance in regard to inflation is essential," said Mr Bernanke, who delivered his most extensive thoughts on the economy in several months.
He offered a mostly positive assessment of economic conditions in an appearance before Congress' Joint Economic Committee.
To fend off inflation, the Federal Reserve on March 28th boosted a key interest rate by one-quarter percentage point to 4.75 per cent. It was the 15th increase of that size since the Fed embarked on a credit-tightening campaign in June 2004.
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AP