How long until the forex market stops paying attention to this jawboning no-action rhetoric? What a pathetic display by the Fed.

Hysteria

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WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke says the central bank will keep a close eye on the sliding U.S. dollar even as he pledges anew to keep interest rates at record-lows to nurture the economic recovery.

In remarks prepared for delivery to the Economic Club of New York, Bernanke engages in a delicate dance.

He makes clear Fed policymakers will keep rates at super-low levels. Yet he also is trying to bolster confidence in the dollar without actually raising rates before the budding recovery could handle such a move.

Economists say a free-fall in the value of the dollar is remote but can't be dismissed. The low interest rates are needed to encourage American consumers and businesses to spend more and fuel the recovery.