WASHINGTON — Federal Reserve Chairman Ben Bernanke told Congress today that any hope for an economic recovery will hinge on the government's ability to prop up shaky financial markets.

The effectiveness of a string of radical actions taken by the Fed, the Treasury Department and other agencies to stabilize markets "will be critical determinants of the timing and strength of the recovery," Bernanke said in testimony to the Senate Budget Committee.

The Fed chief found himself on the hot seat when lawmakers voiced concerns about the government's new $30 billion lifeline for ailing insurance giant American International Group. The latest plan, announced Monday, marked the government's fourth effort to stabilize AIG.

Both Democratic and Republican lawmakers expressed skepticism over whether the action would work, said they were worried that more taxpayer money will be needed to rescue the company and demanded more accountability.

"I share your anger," Bernanke said. The government didn't really have a choice but to take the action because a collapse of AIG would have grave implications for the country's already fragile economic and financial health, he added.