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Oct 15, 2010 8:24 AM by Associated Press

Bernanke: Fed wrestles with size of aid program

Federal Reserve Chairman Ben Bernanke says the central bank is prepared to take steps to rejuvenate the economy through the purchase of Treasury bonds but is wrestling with how big the program should be.

Bernanke also says the Fed could use its communications powers to prevent the United States from slipping into a deflationary spiral.

But Bernanke says the Fed must proceed cautiously in deciding how big a program to buy Treasury debt should be.

Bernanke said it is a challenge for Fed policymakers to determine the size of the program and how the debt purchases would be paced.

Many economists predict the Fed will announce a new program at its next meeting Nov. 2-3.

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