Bernanke: High foreclosure rate hurts U.S. economy

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Wednesday the high rate of foreclosures would be adverse to the U.S. economy.

"Clearly if we can take actions to mitigate the rate of foreclosures to work out or otherwise modify loans, or find ways to help people avoid foreclosure, that is certainly positive," Bernanke told the U.S. House of Representatives' Financial Services Committee.

Bernanke said the broader economy is hurt because the high foreclosure rate makes the housing market weaker and that has an effect on the whole economy.

(Reporting by Nancy Waitz; Editing by James Dalgleish)