WASHINGTON — Federal Reserve Chairman Ben Bernanke faced an unusual political trial yesterday and disputed accusations that he pressured Bank of America to acquire Merrill Lynch in a deal that cost taxpayers $20 billion.

Bernanke denied to a House committee investigating the matter that he threatened action against Bank of America CEO Kenneth Lewis or the bank's board members if they abandoned the takeover.

It marked Bernanke's first public comments since the House committee launched an investigation this year into whether he or other government officials bullied Bank of America to stick with its plan to combine the two financial powers after Lewis learned of Merrill's financial woes.

During the three-hour hearing, Bernanke faced skepticism and often-hostile questioning — unusual for a Fed chairman, who typically commands deference in public settings.

Adopting the role of outsider, Republicans in particular have turned aggressive toward Bernanke, trying to link him to the Obama administration as advocates of government meddling in private industry. Many Republicans are suspicious of the administration's plan to expand the Fed's regulatory powers.

JOBLESS CLAIMS UP; 6.74M STILL GET AID

WASHINGTON — The Labor Department said yesterday that new jobless claims jumped unexpectedly last week. And the number of people continuing to receive unemployment aid rose more than expected.

The figures indicate that jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.

The number of people who are continuing to receive unemployment insurance rose by 29,000 to 6.74 million, slightly above analysts' estimates of 6.7 million. The four-week average of claims was largely unchanged, at 616,750.

Most economists still expect the number of initial unemployment insurance claims, which reflects the level of layoffs, to decline slowly in coming months.

EMERGENCY LENDING PROGRAM TO LAPSE

WASHINGTON — The Federal Reserve took the first step yesterday toward winding down the numerous emergency lending programs it launched last fall at the height of the financial crisis.

The Fed will allow one program intended to support money market mutual funds to lapse by Oct. 31, and is reducing the amount it will lend to banks under two others.

The Fed also is extending through Feb. 1, 2010, five other programs scheduled to expire Oct. 31. That includes swap lines with 14 central banks that enable them to provide dollars to their financial systems in exchange for giving the Fed foreign currencies.