Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (75968)	12/7/2009 12:50:23 PM
From: TideGlider	1 Recommendation Read Replies (1) \| Respond to of 224708

He also stated that it wouldn't happen swiftly! Bernanke says modest growth will lower jobless rate in 2010.

To: Kenneth E. Phillipps who wrote (75968)	12/7/2009 1:03:53 PM
From: JakeStraw	2 Recommendations Respond to of 224708

Bernanke never saw the housing crisis looming on the horizon yet you trust his ability to forsee the future?

To: Kenneth E. Phillipps who wrote (75968)	12/7/2009 3:21:37 PM
From: TideGlider	1 Recommendation Read Replies (1) \| Respond to of 224708

Bernanke: too early to declare lasting recovery Bernanke says still too early to declare that budding economic recovery will last By Jeannine Aversa, AP Economics Writer On 2:55 pm EST, Monday December 7, 2009 Buzz up! 1 Print WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke warned Monday that it's too soon to know whether the economic recovery will last and again pledged to hold rates at extra-low levels for an "extended period." AP - Federal Reserve Chairman Ben Bernanke waits to speak during a discussion hosted by The Economic Club of Washington, ... The Fed chief's speech to the Economic Club of Washington made clear he thinks the economy will struggle even as it recovers from the recession. He said the economy confronts "formidable headwinds" -- including a weak job market, cautious consumers and tight credit. Those forces "seem likely to keep the pace of expansion moderate," he said. The central bank has leeway to keep rates low because inflation is under control and is expected to stay tame because of the economy's weakness. Some private forecasters even fear that the recovery could fizzle late next year as government stimulus fades. Asked about prospects for such a "double dip" recession, Bernanke said he could not guarantee it won't happen. He stuck with his forecast for a moderate recovery but said a "vigorous snapback" is less likely. Bernanke said he expects "modest" economic growth next year. That should help push down the nation's unemployment rate -- now at 10 percent -- "but at a pace slower than we would like," he acknowledged. Under one Fed forecast released last month, the jobless rate would remain stubbornly high next year -- ranging from 9.3 to 9.7 percent. The Fed has warned that it could take five or six years for the job market to return to normal. To nurture the recovery, the Fed has kept rates at record low near zero for a year. The central bank is widely expected to leave rates at those super-low levels at its meeting on Dec. 15-16. By doing so, the Fed hopes to entice people and businesses to boost spending, which would aid the recovery. Despite all the negative forces, consumers recently have shown their resilience and kept spending. Home sales have firmed helped by the government's tax buyer credit. Car sales were aided by the government's now-defunct Cash for Clunkers rebates. Business spending on new equipment and software also showed signs of stabilizing, and better economic conditions abroad have boosted U.S. exports. The speech, which outlined the most frequently asked questions put to the central bank, comes as Bernanke seeks another four-year term. Some lawmakers skewered Bernanke at his Senate confirmation hearing last week about high unemployment, regulatory lapses that contributed to the financial crisis and the Wall Street bailouts that followed. Even as some senators vowed to block his confirmation, it appears Bernanke will be able to secure the votes necessary to be approved to another term. As he did last week, Bernanke said he has the tools and the political will to reverse course and start boosting interest rates and tightening monetary policy when the time is right. He didn't say when that would be, although many economists think it will be later next year. On other matters, Bernanke predicted taxpayers will get all their money back from the financial bailouts as well as some "fairly significant extra income" from the investments. "I think we're in very good shape," he said. He also voiced his opposition again to congressional efforts to audit the Fed. His concern is that the legislation will affect the Fed's setting of interest rates. "Reducing the independence of the Fed ... would be bad for markets, bad for the Fed's credibility, bad for inflation expectations and bad for the dollar," he said. Asked what he likes best about being Fed chief, Bernanke struck a lighthearted tone. "I get to go through the security lines at the airport much more quickly and I can take along even three ounces of fluid if I want to," Bernanke said, causing the audience to erupt in laughter. Buzz up! 1 SendSharePrintShare this page DeliciousTwitterMyspaceDiggStumbleUponFacebook