[ForexNews]

In an interview with PBS, Fed Chairman Bernanke said that the Federal Reserve agrees with Treasury's "strong dollar" policy: "We think the dollar should be strong," he said. "Our whole strategy right now is to get the economy out of the doldrums and back on to a growth pack that will attract foreign funds and will get the dollar and keep it strong."

On consumer prices, the Fed Chairman reiterated the Fed's message that inflation is under control: "With 9.5% unemployment and with product markets as weak as they are it's very hard for firms to raise their prices and for workers to raise their, ask for higher wages, in fact we're seeing prices and wages being very, very moderate." In terms of the Fed's exit strategy with respect to quantitative easing, he noted that: "It will be very important for the Fed to unwind, raise interest rates, bring that credit back, bring the money back, so we don't have inflation problems down the road." On the timing of economic recovery, Mr Bernanke said: "we're seeing progress in the financial markets which is very encouraging and suggest we are going to start seeing some growth in the economy in the second part of this year and maybe picking up in 2010." But, he warned, "It will probably be longer than that before unemployment comes down to a level that we find acceptable."