Ben Bernanke said that the US Federal Reserve would support a weak economy for the foreseeable future as he sought to calm fears that have rocked global financial markets in recent weeks.

In testimony to Congress yesterday, the Fed chairman said asset purchases would slow from $85bn a month later this year if the economy stayed strong, but he argued that the Fed was not backing away from easy monetary policy with almost every other word.

His testimony does not signal a change in the Fed’s policymaking committee or the likelihood of “tapering” by the central bank this year, but should counter concerns that it has lost its will to support the economy. “With unemployment still high and declining only gradually, and with inflation running below the Committee’s longer-run objective, a highly accommodative monetary policy will remain appropriate for the foreseeable future,” said Mr Bernanke.