Bernanke: Economy Should Start to Grow Later in the Year

Speaking to Congress earlier today, Fed chairman Ben Bernanke, painted a somewhat upbeat forecast of the US economy.

According to Real Clear Markets.com: ” Even with all the cautionary notes, the Fed chief offered a far less dour assessment of the economy.

“We continue to expect economic activity to bottom out, then to turn up later this year,” he told lawmakers. “We expect that the recovery will only gradually gain momentum.”

Recent data suggest the recession may be loosening its grip on the country, Bernanke said.

“The pace of contraction may be slowing,” he said. It was similar to an observation the Fed made last week in deciding not to take any additional steps to shore up the economy.

The housing market, which has been in a slump for three years, has shown some signs of bottoming, he said. Consumer spending, which collapsed in the second half of last year, came back to life in the first quarter.”

Let’s hope he is right.

Tagged as: Ben Bernanke, economic recovery, growing economy, US Economy