'People are ... worried,' Bernanke acknowledges

WASHINGTON -- A slowing economy and rapid inflation are presenting significant challenges to Federal Reserve policymakers, Chairman Ben Bernanke told the Senate Banking Committee on Tuesday.

Bernanke, presenting the Fed's twice-annual report to Congress, predicted the economy would grow through the rest of year, albeit at a weak level.

But he acknowledged that is cold comfort for consumers.

"Whether it's a technical recession or not ... the combination of declining wealth, a weak job market, rising food and energy prices, foreclosures, tight credit, all those things are putting tremendous pressure on families and ... explains why consumer sentiment is very low," Bernanke said. "People are very worried.

Still the Fed chairman said he wasn't ready to recommend that Congress pass what would be a second economic stimulus bill this year. In February Congress and the White House quickly reached agreement on a $191 billion stimulus package that included tax rebate ...