Fed Tackles Economic Challenges at Jackson Hole

It was obvious they aren't certain how to conduct policy now that interest rates are near zero. There also are big differences about what to do when things return to “normal.”

Most economists in a recent survey said they approved of the Federal Reserve's current course on monetary policy and see deflation as a risk for the short term.

Even as the economy languishes and likely has several quarters of slow growth ahead, Fed Chairman Ben Bernanke was able to convince investors Friday that the central bank will do all it can to promote growth.

U.S. Federal Reserve Chairman Ben Bernanke said on Friday the recovery has softened more than expected and the Fed is ready to take further steps if needed to spur the stumbling economy.

Economic growth has turned slower than policy makers had expected but will steady into the end of the year and get back to normal in 2011, St. Louis Fed President James Bullard told CNBC.

U.S. economic growth slowed more sharply than initially thought in the second quarter, held back by the largest increase in imports in 26 years. However, the reading was a touch better than market expectations.

It could be 10 years before economic growth in the US and elsewhere returns to pre-recession norms and employment rates may never regain lost ground, two prominent economists said.

While immediate market tensions have mostly passed, the sovereign debt crisis continues to be a challenge in Europe and fiscal consolidation is an important “long-term project,” said Axel Weber, president of the Deutsche Bundesbank.

"In its recent statements, the Fed didn't explain its actions after modestly changing policy," Bank of America chief economist Mickey Levy said. "Bernanke  needs to lay out what the Fed's views are on inflation."

The US economy is in a "modest" recovery despite a recent spate of disappointing economic reports, said Kansas City Federal Reserve President Thomas Hoenig.

Central bankers, economists and officials from around the world will assess a darkening economic outlook at the annual U.S. retreat in Jackson Hole this week.

Investors queasy over whether there's anything that can be done to boost the flagging US economy could get a trillion-dollar answer this week from the Federal Reserve.

The Federal Reserve asked a U.S. appeals court to delay implementing a ruling that would force the central bank to disclose details of its emergency lending programs to banks during the financial crisis.

Markets might be getting ahead of themselves in anticipating some bold new moves from the Federal Reserve to combat the weakening economy.

The buzz in Jackson Hole following the Fed chairman's speech, with Greg Ip, The Economist; Neil Irwin, Washington Post and CNBC's Steve Liesman.

Insight on Fed chief Bernanke's speech, with Mark Vitner, Wells Fargo Securities, and Carl Riccadonna, Deutsche Bank, and CNBC's Steve Liesman.

Fed Chairman Ben Bernanke said on Friday the recovery has softened more than expected and the Fed is ready to take further steps if needed to spur the stumbling economy. The Strategy Session pros share their views.

Insight on the German economy and more, with Axel Weber, president of the Deutsche Bundesbank and CNBC's Steve Liesman.

Discussing the future of the Fed, with John Lipski, National Bureau of|Economic Research Board of Directors, and CNBC's Steve Liesman.

Insight on Fed chief Ben Bernanke, with John Silvia, Wells Fargo, and hip Hanlon, Delta Global Advisors.

Insight on the Jackson Hole Fed Symposium, with James Bullard, president of the St. Louis Federal Reserve Bank and CNBC's Steve Liesman.

The Kansas City Fed is hosting an annual symposium in Jackson Hole, with CNBC's Steve Liesman and Thomas Hoenig, Kansas City Federal Reserve president & CEO.

Insight on what Wall Street anticipates from Jackson Hole, with Michelle Girard, RBS sr. economist, Bob Baur, Principal Global Advisors, and CNBC's Steve Liesman.

Insight on the central bank's monetary policy, with Randall Kroszner, former Federal Reserve governor.

The economy is in a soft patch right now, according to Mickey Levy, chief economist at Bank of America Merrill Lynch.

Discussing whether dissent in the Fed will be a leading topic in Jackson Hole, with David Zervos, former Federal Reserve Bank advisor, and Joseph Gagnon, former Federal reserve associate director.

Kansas City Federal Reserve President Thomas Hoenig sits down for a one-on-one interview with CNBC's Steve Liesman at the annual central bankers meeting in Jackson Hole, Wyo.