US Federal Reserve Chairman Ben Bernanke said the Fed is prepared to take further steps to lift the US economy if it weakens, but he didn't signal any imminent action in testimony before a congressional panel yesterday.

Bernanke said the European debt crisis poses significant risks to the US financial markets.

"As always, the Federal Reserve remains prepared to take action as needed to protect the US financial system and economy in the event that financial stresses escalate," Bernanke told the congressional Joint Economic Committee.

Most economists don't expect further moves at the Fed's next policy meeting on June 19-20, despite some signals from other Fed members in recent days. They note that long-term interest rates have already touched record lows. Even if rates decline further, analysts say they might have little effect on the economy.

John Ryding and Conrad DeQuadros, economists at RDQ Economics, said there was nothing in the testimony to "tip Bernanke's hand" ahead of the June meeting of the Federal Open Markets Committee, the Fed's policy committee.

"Yes the Fed Chairman said the Fed stands ready to act if Europe poses a threat to the US financial system or the economy. However, he gave no specifics and essentially repeated the language from the FOMC statement," they wrote in a note to clients.