Bernanke Cites Economic Improvements
Reuters reports:
(Reuters) - The U.S. economy may finally be hitting its stride even if growth remains too weak to put a real dent in the nation's jobless rate, Federal Reserve Chairman Ben Bernanke said on Friday.
Offering no real clues on the future direction of monetary policy, Bernanke sounded cautiously more upbeat than he had in his most recent public remarks. He cited improvements in consumer spending and a drop in jobless benefit claims as hopeful signs a languid recovery was perking up.
"We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold," the central bank chief said in his first testimony to Congress since the Fed launched a controversial plan to buy an extra $600 billion in government bonds.
Just a month ago, in an interview on the CBS program "60 Minutes," Bernanke voiced a degree of trepidation about the economy's rebound.
His remarks on Friday were made public just an hour after the government reported the economy generated a disappointing 103,000 jobs in December.
Bernanke, who said it would take four to five years for the labor market to get back to normal, showed no inclination toward cutting short the Fed's bond purchase program, designed to stimulate the economy. But he also offered no hints of further buying beyond the program's June deadline.
