Tuesday, February 24, 2009

Bernanke Shows Cautious Optimism About Recovery

In his opening statement to the Senate Banking Committee, Federal Reserve Chairman Ben Bernanke expressed hope that there may be some economic recovery in the United States before the end of the year.

Bernanke's predictions are predicated upon President Obama's economic recovery plan working. But he says that if the president is successful, he projects that the "contraction" of the economy will continue through the first half of 2009. But, he says, there will be some recovery in the second half of the year and into 2010.

He says if all goes well, recession "will end in 2009." Full recovery, he says, would take 2-to-3 years.

But Bernanke did offer some cautionary notes.

"Downside risk," he said, "outweighs those on the upside."

Bernanke's testimony is being carried live on News Talk Online on Paltalk.com.

Bernanke touted the actions the Fed has taken so far to help obviate the economic crisis. Including the opening of new lending facilities and enacting measures to reduce what he called, "unnecessary foreclosures."

We talk about these issues and more weekdays at 5 PM New York time on News Talk Online on Paltalk.com

9 comments:

Anonymous said...

What does "Downside risk outweighs those on the upside?" Love Bernanke's optimism though.

Deborah Young

Anonymous said...

Gary, thanks for live blogging the Fed testimony.

Regarding Deborah's question, I think Bernanke's "downside risk" comments come from looking at the trends the Fed just published las Friday. They are down and setting historic records, and there is no evidence of a bottom yet. For charts from the Fed, check out my post yesterday, by clicking on my name below this comment, and searching for the "Toto,..." post.
Jay Kimball

Anonymous said...

I sure hope he is right. But judging by his track record, Bernanke doesn't seem to be right very often.

Anonymous said...

I sure hope he is right. But judging by his track record, Bernanke doesn't seem to be right very often.

Anonymous said...

Again Gary, do you know what kinds of models are being used for these predictions or is it just take this guy for his word kind of reporting? Either way is fine, I was just hoping for some critical questions.
Aaron Rury

Anonymous said...

I don't think the near future is that bright.I believe it will take much longer for us to see an "up". I think Bernanke was trying to put lipstick on a pig, put no matter how you pait it, it's still not going to be pretty.

Anonymous said...

Even a broken clock is correct twice a day. He doesn't engender trust.

Anonymous said...

and what does economic recovery mean???? for those at the top whose discomfort has been emphasised or so many at the other end whos houses were lost will economic recovery mean when they r reinstated??

we are fed so much bullshit and we r bailing out the gamblers that run/ruin our economies.

bailouts would be better through the bottom maybe we could all pay a little of our loans and thereby the money comes to the banking system anyway but it also helps the disenfranchised.

my advice grow vegies in your victory garden and walk.

fred braat

Anonymous said...

My rational side says that no one can know when this will be over but my emotional side sure hopes he's right. Thanks for the excellent reporting, Gary.

Lisa Kern