Fed Chairman Ben Bernanke was positive about the outlook for economic recovery, saying he didn’t forsee a double-dip recession — where things get worse before they get better — as consumer spending and investment were on an upward trend.
Bernanke made several comments on the economy off the cuff during a Q&A at the Woodrow Wilson International Center for Scholars last night. Though he noted a rise in comsumer spending, he reportedly said it wouldn’t “feel terrific”, as recovery wouldn’t be fast enough to restore 8 million jobs right away. Unemployment would likely remain high, as some analysts have feared after the latest jobs report for May saw minimal growth in the private sector. Despite the jobless rate continuing to be poor, Bernanke still noted strength in a 3 percent economic growth.
Bernanke was clear to point out that the U.S. economy is “getting its own legs” as the stimulus spending tapers off. “We’ve seen the consumer coming back, we’ve seen firms spending more on equipment and software. So there are some signs that the private sector is picking up the baton,” he said.
He also said that despite the fact things are far from resolved in Europe, he has confidence European leaders are committed to sorting out the debt problems in Greece and other countries.
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