Federal Reserve chairman Ben S Bernanke said while hes encouraged by the unemployment rates decline to 8.3%, continued accommodative monetary policy will be needed to make further progress.

The decline in unemployment may reflect a reversal of the unusually large layoffs that occurred during late 2008 and over 2009, Bernanke said in a speech in Arlington, Virginia on Monday.

To the extent that this reversal has been completed, further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies.