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July 25, 2008 5:22:25 PM CDT

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Bernanke: Adjustment Is Mostly Over

Posted Apr 2, 08 10:24 AM CDT in Business 

(Newser) – Ben Bernanke for the first time acknowledged the possibility of a US recession, but he also voiced optimism that “much” of the adjustment period was over, the Wall Street Journal reports. His testimony before Congress seemed to suggest an end to aggressive stimulus measures—noting that rates had already been cut “substantially” and inflation was still a “source of concern.”

Though Bernanke admitted that real GDP will likely remain flat or even contract in the first half of 2008, he believes that the economy will improve later this year. But he warned “the uncertainty attending this forecast is quite high and the risks remain to the downside.” He also pointedly omitted his oft-repeated promise to intervene in a “timely manner as needed.”

Source Wall Street Journal

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Federal Reserve Chairman Ben Bernanke, center, meets with House Minority Leader John Boehner of Ohio, left, and House Minority Whip Roy Blunt of Mo., April 1, 2008, on Capitol Hill in Washington.   (AP Photo/Lauren Victoria Burke)
Federal Reserve Chairman Ben Bernanke walks to a meeting with House Republicans, Tuesday, April 1, 2008, on Capitol Hill in Washington.   (AP Photo/Lauren Victoria Burke)
Federal Reserve Chairman Ben Bernanke delivers the Fed's Monetary Policy Report, on Capitol hill in Washington in this Feb. 28, 2008 file photo.   (AP Photo/Dennis Cook, File)
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Congress  • US economy  • Federal Reserve  • recession  • Ben Bernanke  • interest rate cut  • economic stimulus


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