Scott Lanman and Joshua Zumbrun
June 8, 2010
Federal Reserve Chairman Ben S. Bernanke said the U.S. recovery probably won’t quickly bring down the unemployment rate, which is likely to stay “high for a while.”
Given the depth of the recession, the recovery is “moderate paced,” Bernanke said last night in a question-and- answer session with Sam Donaldson, the ABC News journalist, in Washington. In Europe, policy makers “are committed to avoiding default in Greece” and elsewhere, he said.
While the Fed will raise interest rates from a record low before the economy returns to “full employment,” Bernanke said officials don’t know when that process will start. The banking system isn’t fully healthy and lenders are “cautious” in providing credit, he said.
“The unemployment rate is still going to be high for a while, and that means that a lot of people are going to be under financial stress,” Bernanke said at the event, part of a dinner hosted by the Woodrow Wilson International Center for Scholars.
This article was posted: Tuesday, June 8, 2010 at 10:35 am