Federal Reserve chairman Ben Bernanke said Friday the financial storm that began last year "has not yet subsided," creating "one of the most challenging" economic environments in memory.
In comments to the Fed's annual symposium in Jackson Hole, Wyoming, Bernanke said economic conditions remain soft as unemployment is rising and inflation pressures remain hot.
The mix has created "one of the most challenging economic and policy environments in memory," Bernanke said, according to a text of his remarks released by the central bank.
Bernanke said the Fed is been working on three fronts in an effort to maintain economic stability -- keeping interest rates low to prevent a collapse of economic activity, offering extra liquidity to banks and brokerages facing a credit squeeze, and revamping the regulatory structure to prevent a recurrence of the housing boom-bust cycle.