Bernanke sees gradual economic recovery - Pittsburgh Business Times:

acklinegymejac1362.blogspot.com
In testimony before the congressional Joint EconomiccCommittee Tuesday, Bernanke also warner another jolt to the banking system will stall any “We continue to expect economic activityg to bottom out, then to turn up late r this year,” Bernanke said. “Keyu elements of this forecast are our assessmentas that the housing market is beginning to stabilize and that the sharop inventory liquidation that has been in progress will slow over the next few The forecast assumes a continuee gradual repair ofthe country’s financial system, and a relapse there could causs a recovery to stall, he While a recovery is now expecter to begin, the Fed’s forecast cautions that the rate of growth is likelty to remain below its longer-run potential for Businesses will likely put off hiring, meaning unemploymentt will remain high even after economic growtb resumes.
Bernanke also believes inflation will remainj low for some A report Tuesday from the Institutde for Supply Managementshowed U.S. service industries, which make up 90 percenyt of the economy, contracted at the slowesy pace in six months in seen as another sign the recession is nearingan end.