Tuesday, October 4, 2011

Danger: US Economic Recovery Is Fragile

In oddly, cold, precise testimony to Congress today, Federal Reserve Chairman Ben Bernanke said that the economic recovery in America "is close to faltering." The global economy appears slow and rudderless, and Bernanke spoke on a day of significant gyrations in stock valuations on Wall Street.

Bernanke also expressed sympathy for the demonstrators who are opposed to Wall Street and its interests, since he acknowledged that economic growth is slow indeed . "Certainly, nine percent unemployment and very slow growth is not a good situation. That’s why they are protesting," he noted.

Bernanke said there was little the Fed can do about the problems of European finance, specifically the Greek financial crisis. He called America "innocent bystanders" with respect to the problems in Europe.

Bernanke thinks "operation twist," a Fed move to lower certain long-term interest rates, will help somewhat and may reduce the risk of the economy faltering.

In the final 30 minutes of trading on Wall Street, the averages rallied and the major American stock markets closed with gains. But many reputable analysts see stagnation or very slow growth in Europe as inevitable and thus dampers on the recovery in the U.S.A., which is proceeding so slowly that unemployment remains high.

Summarized from the AP at: http://news.yahoo.com/bernanke-warns-recovery-close-faltering-214911972.html

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