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.
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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 23rd Apr 2014]
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With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
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