Fed chairman Ben Bernanke says recovery in US 'fragile'
Published: 7th Dec 2009 20:44:39
Although the US economy is improving, it is too early to say that the recovery will last, Federal Reserve chairman Ben Bernanke has said.
Unemployment could stay "elevated", although inflation is likely to remain "subdued", he said in a speech to the Economic Club of Washington.
Interest rates were likely to stay low for "an extended period", he added.
Following Mr Bernanke's comments, the dollar lost recent gains it had made against the euro.
The euro had been trading at $1.4757 earlier in the day, but rose as high as $1.4883 after Mr Bernanke's remarks.
US stocks rose modestly, with the Dow Jones index climbing 47.5 points to 10,436.
'Some way to go'
During Mr Bernanke's tenure, the US central bank has cut interest rates to close to zero, and has spent $3 trillion (£1.8tn) on propping up the credit markets and trying to boost the economy.
Investors had been hoping that Mr Bernanke would give some clues as to how the Fed might unwind its economic stimulus efforts, following a government report on Friday which showed that in November, employers cut the lowest number of jobs since the recession began.
The surprisingly positive report had fuelled speculation that interest rates could rise sooner than had been anticipated.
But Mr Bernanke said that rates would remain low, and the outlook for rates would be discussed at the Fed's meeting on 15-16 December.
"We still have some way to go before we can be assured that the recovery will be self-sustaining," he said.
At 04:01:55 in BusinessHousing experts have called for minimum standards to be better enforced in the private rental market to stop landlords exploiting vulnerable tenants.
At 03:40:04 in HeadlinesLeaders of the EU's 28 states are heading to Brussels for a special Saturday summit to decide who will fill two of Europe's top jobs.
At 03:05:09 in HeadlinesA fear of being viewed as racist has been cited as one of the reasons why child sexual exploitation in Rotherham was allowed to proliferate for 16 years. But how much of a factor is this fear in the day-to-day work of social workers and others working to prevent abuse?
At 02:55:03 in WorldThe corruption case of former Virginia Governor Bob McDonnell and his wife has gone to a jury after a 25-day trial.
At 02:38:45 in HeadlinesSome 230 members of an Orthodox Jewish group have begun leaving a village in western Guatemala after a bitter row with the local indigenous community.
At 02:18:39 in EntertainmentCheer/groan (delete according to mindset): The X Factor is back. Author Jeremy Clay tells the story of the show's Victorian forebear, where the hopefuls had to sing while carrying a pig.
At 02:00:22 in WorldMacedonia has embarked on a major revamp of its capital city, Skopje. But the changes have been controversial with some calling the makeover a "crime".
At 01:55:49 in HeadlinesItalian Prime Minister Matteo Renzi has announced a series of measures designed to overhaul the country's notoriously slow justice system.
At 01:32:04 in HeadlinesA US judge has struck down part of a Texas abortion law that would have closed more than a dozen clinics.
At 00:56:34 in ScotlandA charity campaigner has called for better information on the number of Scottish children with a disability.
Harvard CitationBBC News, 2009. Fed chairman Ben Bernanke says recovery in US 'fragile' [Online] (Updated 7th Dec 2009)
Available at: http://www.ukwirednews.com/news/1252/Fed-chairman-Ben-Bernanke-says-recovery-in-US-fragile [Accessed 30th Aug 2014]
News In Other Categories
The only clinical trial data on the experimental Ebola drug ZMapp shows it is 100% effective in monkey studies, even in later stages of the infection.
Cheer/groan (delete according to mindset): The X Factor is back. Author Jeremy Clay tells the story of the show's Victorian forebear, where the hopefuls had to sing while carrying a pig.
George Galloway has been left badly bruised after he was attacked on a street in London, his spokesman has said.
Microsoft's Windows Live Messenger will be switched off in China in October, marking a final end to the 15-year-old service.
A charity campaigner has called for better information on the number of Scottish children with a disability.
Housing experts have called for minimum standards to be better enforced in the private rental market to stop landlords exploiting vulnerable tenants.