tariffs on Brazilian

Federal Reserve Chairman Ben Bernanke said on Thursday he favored cutting high tariffs on Brazilian ethanol to help take pressure off food prices.

"As you know, I favor open trade and I think allowing Brazilian ethanol, for example, would reduce costs in the United States," Bernanke told the Senate Banking Committee.

Most of the ethanol made in the United States comes from corn, and domestic production is protected from sugar-based Brazilian ethanol by a steep tariff.

Bernanke said that it was difficult to say how many current high demand for ethanol is to raise food prices.

"But it is the case that a significant portion of the corn crop is diverted to ethanol, which raises the price of bread," Bernanke said panel.

"I have some side effects, for example in some of areas of soybean production has been moved to maize, which is likely to have some effect on soybean prices. therefore there is some impact on the price of food by switching to energy use," said Bernanke.