Federal Reserve Chairman Ben Bernanke made a guarded declaration of success Tuesday before a skeptical and sometimes combative audience, saying Fed policies had helped to set the stage for a modest recovery this year.

In his semiannual testimony to Congress on the economic outlook, Mr. Bernanke laid out the case that growth is returning, saying businesses and consumers could be nearer to a resumption of spending after wrenching cutbacks. He also turned up the heat on Congress and the White House to get budget deficits under...