Recession ‘very likely over,’ Bernanke says
But Fed chief says economy not growing quickly enough yet to lower jobless rate.
FROM WIRE REPORTS
Wednesday, September 16, 2009
Federal Reserve Chairman Ben Bernanke said Tuesday the worst recession since the 1930s is probably over, but he cautioned that it would be many months before unemployment rates drop significantly.
Hopes for an economic recovery were bolstered, however, by reports that sales at U.S. retailers surged in August by the most in three years. The unexpectedly strong showing in consumer demand extended even beyond the auto purchases spurred by the government’s Cash for Clunkers rebate program.
Adding to concerns about a recovery was a report that the U.S. producer price index, which measures changes in wholesale prices, climbed to its highest level in almost a year, driven by a surge in energy prices.
Bernanke said the economy probably is growing — but not at a pace sufficient to prevent the unemployment rate, now at a 26-year high of 9.7 percent, from rising.
“From a technical perspective, the recession is very likely over at this point,” he said, adding that “it’s still going to feel like a very weak economy for some time, as many people will still find that their job security and their employment status is not what they wish it was.”
