Fed chief Bernanke plays down new recession risk

The head of the US Federal Reserve has played down the risk of renewed recession, despite saying the outlook for the economy there is "unusually uncertain".

Ben Bernanke told the Senate Banking Committee overnight that the US Central Bank is ready to ease monetary policy further if the economy falters.

However he played down the risk of renewed recession, saying the growth that returned to the economy about a year ago is expected to continue.