Bernanke: Recession Should End This Year

2010 will be 'year of recovery'
By Kevin Spak,  Newser Staff
Posted Feb 24, 2009 10:09 AM CST
Federal Reserve Chairman Ben Bernanke speaks at the National Press Club in Washington, Feb. 18, 2009.   (AP Photo)
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(Newser) – If the government’s plans work, the recession will be over by the end of this year, Ben Bernanke told senators today, making 2010 a “year of recovery.” But, the Wall Street Journal reports, the Federal Reserve chief pointed to continuing storm clouds, saying the US is undergoing a “severe contraction,” and that “the downside risks probably outweigh those on the upside.”

Bernanke said the Fed’s rosy forecast—which shows the economy shrinking 0.5%-1.3% this year, then recovering by 2.5%-3.25% in 2010—were based on the predicted benefits of the stimulus and low energy costs. Bernanke also promised that the Fed funds rate would stay “exceptionally low … for some time,” and touted new measures to increase transparency.