Bernanke suggests that more bailout is justified as US faces more unemployment

Responding to the much criticism poured by the public on the central bank’s action to inject more money into the US economy, Federal Reserve Chairman Ben Bernanke sated that a long period of high unemployment could exact a steep social cost.

Meanwhile, Minneapolis Fed President Narayana Kocherlakota said the Fed's controversial bond purchase program was needed given a "troubling" slowdown in U.S. economic growth and too low inflation and employment.

"There are obviously very severe economic and social consequences from this level of unemployment," Bernanke said at Ohio State University. "So getting new jobs, getting unemployment down is of an incredible importance."

The high share of workers who have been out of work for six months or longer is troubling, he said, because those workers face a particularly high bar to reentering the labor force both because they lose skills and because employers may question their suitability for employment.

Bernanke also said the elevated jobless rate makes businesses and households reluctant to spend because they are uncertain of future income.