The U.S. economy is on "firm footing," but further interest rate hikes could be needed as the U.S. faces the threat of higher inflation, Ben Bernanke testified today in his first appearance before a congressional committee as Federal Reserve chairman. Speaking to the House Financial Services Committee. Mr. Bernanke said that gross domestic product output could "overshoot" actual production and continued high energy prices could mean higher inflation.
"In these circumstances, the Federal Open Market Committee (of the Federal Reserve) judged that some further firming of monetary policy may be necessary, an assessment with which I concur," said Mr. Bernanke.
