Fed Chief Sees Economic Growth Later This Year

05.05.09 | FL News Team

Federal Reserve Chairman Ben Bernanke sees a return to economic growth later this year. Testifying in a congressional hearing, Bernanke said he expects economic activity to "bottom out" and then "turn up, later this year." He warned that a broad recovery from the deepening recession could be slow. That, he added, will probably be a continued drag on the jobs market. 

Bernanke said, "businesses are likely to be cautious about hiring, implying that the unemployment rate could remain high for a time, even after economic growth resumes." Bernanke also cited considerable, ongoing stress on financial markets and cautioned that those strains could derail a recovery. Meantime, Bernanke expects inflation to remain relatively low.