According to US Federal Reserve Chairman Ben S Bernanke, the economic system of the country was continuing to flourish in a moderate manner owing to stimulative monetary as well as fiscal plans, however, jobs and the housing market remained troublesome.

Testifying before the US Senate Banking Committee in his semi-annual assessment of the economic situation, Bernanke noted a "slow recovery" in the job market, which was in turn impacting on a "weak" housing market.

With the financial system still lethargic, the RBI had to remain "prepared" to step in as required to help improve growth, Bernanke said.

But he offered few insights on additional steps the Fed might take, beyond keeping interest rates at a record low of near 0 percent.

Bernanke also hailed a sweeping overhaul of US financial regulation that was signed into law by President Barack Obama Wednesday.

Bernanke said, "That legislation represents significant progress toward reducing the likelihood of future financial crises and strengthening the capacity of financial regulators to respond to risks that may emerge."

But he admonished that "much work remains to be done" in accomplishing the legislation.

The reforms would "place our financial system on a sounder foundation and minimize the risk of a repetition of the devastating events of the past three years."

Bernanke said the Fed's economic outlook remained "qualitatively similar" to earlier estimates in February and May, with real GDP growth anticipated at 3-3.5% in 2010.

In opening remarks to the committee, this would be accompanied by 3.5-4.5% growth by 2011-2012.

Bernanke said real consumer spending grew at an annual 2.5-percent rate in the first half of 2010, characterised by rapid expansion on purchases of durable goods.

The job market remained hard.

Bernanke stated that private payrolls had expanded by about 100,000 per month in the first half of the year.

Bernanke's testimony was hotly anticipated amid a debate between US lawmakers over how to revive a still-sagging economy. Obama's approval ratings have remained low, with a jobless rate stuck at 9.5 percent.

Underscoring the slower pace of job recovery, Bernanke said, "In all likelihood, a significant amount of time will be required to restore the nearly 8-1/2 million jobs that were lost over 2008 and 2009."

Democratic lawmakers have been pushing to inject more public funds into the economy, beyond a 787-billion-dollar fiscal stimulus approved last year, while conservatives have urged more attention to the soaring fiscal deficit.

The Federal Reserve, too, has been divided over how quickly to relax monetary policy measures that have been designed to stimulate the economy. Some central bank members have wavered on decisions to keep interest rates at a record low of near 0 percent. (With Inputs from Agencies)