The president of the Federal Reserve said before the Joint Economic Committee that the US continues to move toward an economic recovery, but growth will remain moderate affected by the labor market, fiscal deficits and weakness in the housing sector.
Ben Bernanke, is testifying before the Joint Economic Committe in the US Congress. On a prepared statement, the president of the Federal Reserve affirmed: “the income data suggest that growth in private final demand will be sufficient to promote a moderate economic recovery in coming quarters”.
He also added that “significant restraints on the pace of the recovery remain including weakness in both residential and nonresidential construction and the poor fiscal conditions of many state and local governments”.
Regarding the labor market, despite recent non farm payrolls, Bernanke express concerns about the time an unemployed spends without finding a job.
On the US deficit, according to the Chairman of the FED a “credible plan for fiscal sustainability” could yield benefits by keeping long term interest rate lower and by increasing consumer and business confidence.
“Addressing the country's fiscal problems will require difficult choices, but postponing them will only make them more difficult”, Bernanke said.
No comments:
Post a Comment