Bernanke defends Fed's low-interest-rate policies

WASHINGTON (AP) — Chairman Ben Bernanke is standing by the Federal Reserve's low-interest-rate policies, cautioning that any move to raise rates prematurely could derail a still-modest economic recovery.

Bernanke also sought to calm fears that super-low rates risk igniting inflation or rattling investors, during a speech late Friday in San Francisco to an economic conference sponsored by the San Francisco Federal Reserve Bank.

The central bank's low-rate policies are intended to encourage borrowing and spending to boost the economy. Higher rates would make borrowing more expensive.

Bernanke said the Fed's policies mirror what other central banks around the world are doing.

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