He's starting to take some more heat as we all know, unemployment is stuck at near 10%. Yahoo! has a story here, with an interesting excerpt:
Even with interest rates effectively at zero, Bernanke argued there is more the central bank can do if needed to spur growth.
One possibility would be to lower the rate it pays banks to park excess reserves at the Fed, currently 0.25 percent. Asked by a legislator why the Fed continues to pay banks to keep their money idle despite weak lending conditions, Bernanke said cutting the rate carries risks.
"If rates go to zero there will be no incentive for buying and selling federal funds, overnight money in the banking system and if that market shuts down ... it'll be more difficult to manage short-term interest rates," Bernanke said.
I conclude that Bernanke is effectively saying that The Fed's monetary policy now exists not to support US economic outcomes that achieve full employment with price stability, but to ensure a liquid Fed Funds market!
Ben, where are the rates going to go!?