US Federal Reserve Chairman Ben Bernanke has warned that unless government efforts succeed in restoring financial stability, the recession in the United States may not end this year.
He told the Senate Banking Committee on Tuesday that the economy was at further risk from a mutually reinforcing cycle of weak growth and financial market strain.
To break this " adverse loop", he said it was essential "to continue to complement fiscal stimulus with strong government action" to stabilize financial institutions and financial markets.
Dr Bernanke provided no details on what further steps officials might take to shore up the US banking system.
Financial markets largely ignored the testimony, focusing instead on a dire reading on US consumer confidence issued by the Conference Board.
US stocks hit a 12-year low on Monday.
