Bernanke Doesn't See Double Dip Recession, But Slow Recovery
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Federal Reserve Chairman Ben Bernanke spoke about hopefulness in the economic recovery and the strong chance of no "double dip" recession in the future.
"My best guess is we will have a continued recovery, but it won't feel terrific," Bernanke said.
Bernanke sees the coming economic growth coming to slow to drive down the unemployment rate, which currently sits at 9.7 percent and has shown no sign of remarkable improvements in the near future.
In the first quarter of the year, the economy in the U.S. grew at a 3 percent pace, which is strong growth when times are good, but coming out of a deep depression the economy must grow faster to drive down the unemployment rate.
In addition, Bernanke spoke about the European debt crisis as the fears have germinated that it will grown into a larger financial contagion, which could hamper lending in the U.S. and other areas around the globe.
Bernanke said that the Fed is keeping a close eye on the situation in Europe and noted that he believes that the moves being taken by the leaders in the regions are the right steps to deal with the problem.
In his answer to the question he gets more than any other, Bernanke said that the historically low interest rates will rise "in the future." The Fed has held the interest rates at lows to help prop up the recovering economy.
Bernanke added that the Fed will be unable to wait until the jobs market is improve to raise rates, but he did not offer any timetable for his plans.
The Fed Chairman also said that the signs for an economic recovery are positive, as consumers and corporations are spending again, and the private sector has now taken the reigns as government stimulus begins to fade.
"My best guess is we will have a continued recovery, but it won't feel terrific," Bernanke said.
Bernanke sees the coming economic growth coming to slow to drive down the unemployment rate, which currently sits at 9.7 percent and has shown no sign of remarkable improvements in the near future.
In the first quarter of the year, the economy in the U.S. grew at a 3 percent pace, which is strong growth when times are good, but coming out of a deep depression the economy must grow faster to drive down the unemployment rate.
In addition, Bernanke spoke about the European debt crisis as the fears have germinated that it will grown into a larger financial contagion, which could hamper lending in the U.S. and other areas around the globe.
Bernanke said that the Fed is keeping a close eye on the situation in Europe and noted that he believes that the moves being taken by the leaders in the regions are the right steps to deal with the problem.
In his answer to the question he gets more than any other, Bernanke said that the historically low interest rates will rise "in the future." The Fed has held the interest rates at lows to help prop up the recovering economy.
Bernanke added that the Fed will be unable to wait until the jobs market is improve to raise rates, but he did not offer any timetable for his plans.
The Fed Chairman also said that the signs for an economic recovery are positive, as consumers and corporations are spending again, and the private sector has now taken the reigns as government stimulus begins to fade.
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