The nation's top central banker on Thursday clarified comments made to lawmakers on Capital Hill yesterday, telling a Senate committee that the Federal Reserve is not yet considering further support for the slumping economy.

Fed Chairman Ben Bernanke echoed prepared remarks made yesterday on the economy, this time before the Senate Committee on Banking, Housing, and Urban Affairs.

But during a question and answer session, Bernanke said no additional support is forthcoming.

"The situation is more complex," Bernanke told the Senate Banking Committee. "Inflation is higher...We are uncertain about the near-term developments in the economy...We are not prepared at this point to take further action."

Bernanke was optimistic that the economy would turn around after a dismal first half of the year.

But if the economic recovery does not pick up the coming quarters, the Fed is prepared to offer additional support beyond the record-low interest rates already in place, Bernanke said.

Real gross domestic product (GDP) rose at about a 2 percent rate in the first quarter of this year, and Bernanke acknowledged that recent data shows the pace of recovery remained soft in the spring.

However, "the recent weaker-than-expected economic performance appears to have been the result of several factors that are likely to be temporary," according to Bernanke, who cited higher prices for staple goods and supply chain disruptions caused by Japan's tsunami.

When the economy is on firmer footing, the Fed intends to tighten monetary policy by first raising its benchmark interest rate, he added.

RTTNews