The Federal Reserve is prepared to take further action to jump start the sluggish U.S. recovery, the nation's top central banker told lawmakers Tuesday morning. However, Fed Chairman Ben Bernanke offered no hints that the central bank is specifically planning another round of quantitative easing. "Reflecting its concerns about the slow pace of progress in reducing unemployment and the downside risks to the economic outlook, the FOMC made clear at its June meeting that it is prepared to take further actions as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," Bernanke said in delivering his twice-a-year testimony to the Senate Banking Committee. The reduction in the unemployment rate in coming months seems likely to be "frustratingly slow," and "Europe's financial markets and economy remain under significant stress, the Fed chief warned." Real gross domestic product (GDP) increased at a 2 percent pace in the first quarter of 2012, and available indicators point to a still-smaller gain in the second quarter. The jobs market has lost momentum as manufacturing activity has tailed off in recent months. The Fed expects the unemployment rate to hold above 8 percent through year's end. Housing was the lone bright spot in Bernanke's assessment of the economic situation.