US interest rates would remain at exceptionally low levels for an “extended period” in spite of the “nascent” economic recovery, Ben Bernanke, Federal Reserve chairman, told Congress yesterday.

Mr Bernanke painted a relatively gloomy picture of the economy, which is still struggling in the wake of the crisis, with high unemployment and a weak housing market. This meant inflationary pressures – the main driver of tighter monetary policy – were likely to remain “subdued”, he added.

“The Federal Open Market Committee continues to anticipate that economic conditions – including low rates of resource utilisation, subdued inflation trends, and stable inflation expectations – are likely to warrant exceptionally low levels of the federal funds rate for an extended period,” Mr Bernanke told the House financial services committee.