Fed policymakers are widely expected to announce a Treasury buying program at their next two-day meeting starting on November 2.  The economy is growing at a pace "less vigorous than we would like," Mr Bernanke said.  Unemployment, now at 9.6pc, has been stuck near double digits for more than a year. Mr Bernanke indicated that the Fed is concerned that economic growth is likely to remain lacklustre and that unemployment will decline only slowly next year.  High unemployment is likely to keep consumers cautious in their spending. For now, the Fed is more interested in seeing prices rise — rather than fall.  "The risk of deflation is higher than desirable," Mr Bernanke said, adding: "There would appear — all else being equal — to be a case for further action."  Boris Schlossberg, director of research at GFT Forex in New York said: "The one card he's keeping close to his chest is the size of QE they are considering. That's the ace up their sleeve that they want to surprise markets with so they don't completely give up policy control."  The dollar fell further after his remarks, hitting parity with the Australian dollar, while gold spiked higher. However, the dollar later clawed back its losses to trade higher by mid morning in New York, while gold slipped.  Traders were also to reacting consumer prices, which excluding volatile food and energy prices, were flat for a second month and weaker consumer confidence.  World stock markets which had also edged higher earlier, fell back.  The Fed is weighing steps to try to raise people's expectations that inflation is going to rise in the months ahead. The hope is that this could make companies more inclined to nudge up prices which would force shoppers to make purchases lifting inflation and boosting the economy.
Ben Bernanke, the chairman of the US Federal Reserve, said with unemployment    too high and inflation too low there was a case for further action to    stimulate the world's biggest economy.