Bernanke defends Fed powers

WASHINGTON: Federal Reserve Chairman Ben Bernanke on Wednesday fought hard to protect the independence of the US central bank and keep responsibility for consumer protection on financial products in its hands.

In a second day of testimony on the Fed's semiannual monetary policy report, Bernanke told the Senate Banking Committee that the US central bank wants to shield monetary policy from political interference, but understands the need to be accountable to taxpayers.

"We do think that the Congress has the right to see how we are using taxpayer money. Where we are concerned is that the Congress would be intervening in our specific policy decisions relating to monetary policy and the economy," Bernanke said when asked about a proposal to expand audits of the Fed.