The Associated Press

Federal Reserve Chairman Ben Bernanke told the U.S. Congress Wednesday that record-low interest rates are still needed to ensure that the U.S. economic recovery will last and to help cushion the sting of high unemployment.

In prepared remarks for his twice-a-year report to the U.S. House Financial Services Committee, Bernanke struck a confident tone that the recovery should endure. But he also sought to tamp down expectations.

The moderate economic growth the Fed expects will lead to only a slow decline in the country’s nearly double-digit unemployment rate, he said.

He offered no new clues about the timing of an interest rate increase. Most economists think it is months away. Bernanke said rates will need to stay at exceptionally low levels for an extended period “as the expansion matures.”

Bernanke is likely to face more pressure than usual from lawmakers in an election year. Their constituents are struggling economically, while bailed-out Wall Street banks are profitable again.

Unemployment stands at 9.7%, home foreclosures are at record highs and individuals and businesses are having trouble getting loans.

The Fed chairman reiterated a pledge that the Fed will keep its main interest rate at an all-time low near zero for an “extended period.”

The target range for Fed’s main rate, the federal funds rate, has been between zero and 0.25% since December 2008.

Bernanke’s comments will be scrutinized around the world by businesses and policymakers, since the state of the U.S. economy has a tremendous impact on other countries.

Like the Fed, the Bank of Canada has lowered its key lending rates for banks to the lowest practical level even though the Canadian banks are widely considered to be in a much stronger condition than their American counterparts.

The Bank of Canada has said it expects to keep its key lending rate at the current level until the summer but there’s widespread speculation about when it will begin to tighten credit conditions.