Ben Bernanke testifies before House Financial Services committee on Capitol Hill in Washington, D.C., 21 Jul 2009The head of the Federal Reserve, the U.S. central bank, is trying to ease concerns that the current economic crisis will give way to another.

The U.S. government has been pumping billions of dollars into the economy to fight the recession and spark economic growth. Some lawmakers, investors and analysts worry the same policies meant to rescue the economy will cause inflation once a recovery starts to take hold.

But Fed Chairman Ben Bernanke says there is no need to worry.

In an opinion piece in Tuesday's Wall Street Journal, Bernanke writes he is "confident" that the central bank has the tools it needs to prevent consumer prices from rising rapidly.

He also writes that the Fed's current policies - designed to make it easier for businesses and consumers to get loans - needs to remain in place "for an extended period."

Bernanke is scheduled to testify before lawmakers later Tuesday.

Bernanke's article in The Wall Street Journal explains the different strategies the Fed will use to prevent inflation from becoming a problem, including the likelihood that the central bank will raise key interest rates.

The Federal Reserve has slashed those rates to near zero in an attempt to stimulate lending by banks. Many businesses depend on loans to pay for supplies as well as the salaries of their employees. Raising interest rates could hurt homeowners who are already struggling to pay their mortgages.

Some lawmakers and economists are also worried that the Obama administration's economic policies are not working.

The nation's unemployment rate recently hit a 26-year-high of 9.5 percent, and top economic officials expect unemployment to peak at more than 10 percent.

A report by the Fed last week predicted the economy will shrink a bit less than earlier estimated.

The central bank now projects a decline of between one and 1.5 percent for 2009 with slow growth next year.


Some information for this report was provided by AP and Reuters.