Bernanke says US financial problems remain unresolved | WPN World People News

The chairman of the United States Federal Reserve, Ben Bernanke, has reported to Congress that he expects no quick recovery from what he called the "great recession."

Appearing on Capitol Hill, he cautioned that the economic outlook remains "unusually uncertain."

In delivering his twice-yearly economic report, Mr Bernanke said he believed the US economy would be able to avoid a double-dip recession while acknowledging that the economy is still fragile.

He said the Federal Reserve would continue its prudent planning for the ultimate withdrawal of stimulus money and also intended to keep record low interest rates in place.

Mr Bernanke said progress in reducing unemployment, which is currently at 9.5 per cent, was going to remain slow until the end of 2012, although the Fed would carefully assess ongoing financial and economic developments.

He said: “We remain prepared to take further policy actions as needed."

Mr Bernanke claimed that private sector job creation would not be sufficient to lower the unemployment rate, with pay rolls expanding slowly at an average of about $100,000 per month during the first half of this year.

Source: Europe News.Net