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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (58745)	12/10/2009 3:36:14 PM
From: elmatador	Read Replies (1) \| Respond to of 220056

US economy improving: US economy moved back from brink of collapse -- Bernanke WASHINGTON, Dec 8 (KUNA) -- The U.S. financial system and the economy have "moved back from the brink of collapse, economic growth has returned and the signs of recovery have become more widespread," a top economic official affirmed here late Monday. Chairman of the U.S. Federal Reserve Board of Governors, Ben Bernanke told the Economic Club of Washington that after facing the "most serious financial crisis and the worst recession since the Great Depression" the U.S. economy has made "important progress" in the past year. "Though we have begun to see some improvement in economic activity, we still have some way to go before we can be assured that the recovery will be self-sustaining," he stressed. According to Bernanke, "modest" growth will continue to be seen in 2010, which will be "sufficient to bring down the unemployment rate," but at a slower pace than desired. He indicated that a number of factors "support the view that the recovery will continue next year," the most important is that financial conditions continue to "improve" and monetary and fiscal policies are "supportive." "On the other hand, the economy confronts some formidable headwinds that seem likely to keep the pace of expansion moderate," he noted. He stressed that despite the general improvement in financial conditions, credit "remains tight for many borrowers, particularly bank-dependent borrowers such as households and small businesses." "The job market, though no longer contracting at the pace we saw in 2008 and earlier this year, remains weak," he added. He also remarked that household spending is "unlikely to grow rapidly when people remain worried about job security and have limited access to credit." "Although we will continue to monitor inflation closely, on net it appears likely to remain subdued for some time," he said. He indicated that by mid-December 2008, the target rate was "effectively as low as it would go, within a range of zero to one-fourth percent, compared with 5-and-a-quarter percent just before the crisis." According to the official, the Federal Reserve's actions, "in combination with those of other policymakers here and abroad, have helped restore financial stability and pull the economy back from the brink."