Bernanke Takes Middle Ground

Federal Reserve Chairman Ben Bernanke gave few hints about the future of monetary policy in a speech Tuesday before the National Italian American Foundation in New York.

The U.S. economy has slowed, but "the deceleration in economic activity currently under way appears to be taking place roughly along the lines envisioned in the Federal Reserve's July report," the chairman said.

Bernanke suggested "real GDP growth this quarter is likely to be in the same general range that it was in the second and third quarters" when it averaged 2.1% vs. an average of 3.5% in the preceding two years. ...