Recovery close to faltering: Bernanke
08 Oct 2011
The Federal Reserve chairman, Ben S. Bernanke, told a Congressional committee that ''the recovery is close to faltering,'' and suggested that avoiding another recession might require fresh government action.
He said that lawmakers and the Obama administration should do more to increase economic growth, while describing the nation's economic health in bleak terms.
''We need to make sure that the recovery continues and doesn't drop back,'' he said.
Analysts say the comments from the Fed chief indicate that the central bank was preparing the ground to reduce interest rates, something that Bernanke has not ruled out, though at recent appearances, he has said that his remarks were aimed at the rest of the government.
Earlier in the week, commentong on housing policy, the Fed chief suggested that government could help indigent home owners refinance and improve the availability of mortgages for potential buyers.
Bernanke has repeatedly called on Congress to adopt a plan for paying down the federal debt, as well as for reducing inequities and loopholes in the corporate tax code, two ideas that enjoy wide support among economists.
''Monetary policy can be a powerful tool, but it is not a panacea for the problems currently faced by the US economy,'' Bernanke said. ''Fostering healthy growth and job creation is a shared responsibility of all economic policy makers.''
