Bernanke presses US leaders to boost economy

US central bank chief Ben Bernanke called on political leaders Friday to do more to boost jobs and the housing market, saying the Federal Reserve could do little at this time to enhance economic growth.
In a speech much-awaited for news of new stimulus moves, Bernanke indicated the Fed would wait until late next month before deciding whether it needs to adjust monetary policy to give the near-stagnant economy a shot of adrenalin.
Instead, he pushed the ball back to the government and fiscal policy, while adding a warning that politicians should not reprise their months-long political battle over spending and debt which he said could "seriously jeopardize" future growth.
"In the short term, putting people back to work reduces the hardships inflicted by difficult economic times and helps ensure that our economy is producing at its full potential rather than leaving productive resources fallow," Bernanke said in prepared remarks for a meeting of central bankers in Jackson Hole, Wyoming.
"Notwithstanding this observation... most of the economic policies that support robust economic growth in the long run are outside the province of the central bank."
Bernanke said the Fed did have policy tools to help out, but would only review them at an expanded meeting of the Federal Open Market Committee (FOMC) policy board on September 20-21.
The Fed "is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability," he said.
Bernanke said he expected growth in the second half of the year to improve after a first half in which expansion was nearly stagnant, at a rate of less than one percent.
But, against deep hopes in markets that he would at least hint at new monetary policies to add some fuel to the economy, he stressed that the work would have to be done by politicians using admittedly tightly constrained budgetary resources.