Bernanke Sees Economy Stabilizing

But not going to improve quickly

By Kevin Spak, Newser Staff

Posted May 5, 2009 11:11 AM CDT

(Newser) – It looks like the economy is stabilizing, Ben Bernanke told the congressional Joint Economic Committee today, but recovery won’t be quick, and there are still “sizable job losses” on the horizon. “We continue to expect economic activity to bottom out, then to turn up later this year,” he said. “Even after recovery gets under way," he said, "real economic activity is likely to remain below its longer-run potential for a while.”

Warning or no warning, this was the Fed chief’s most optimistic assessment since the start of the crisis, the New York Times reports. Bernanke pointed to the first quarter’s consumer spending growth and “fairly stable” existing home sales as portents of a turnaround. He said credit markets were showing signs of life, with homeowners jumping to refinance their mortgages.

Federal Reserve Chairman Ben Bernanke is escorted by Joint Economic Committee Chairwoman Carolyn Maloney and ranking member Sam Brownback at the start of a hearing on Capitol Hill, May 5, 2009. (AP Photo/Susan Walsh)

Federal Reserve Chairman Ben Bernanke testifies before the Joint Economic Committee on Capitol Hill in Washington, Tuesday, May 5, 2009. (AP Photo/Susan Walsh)

Federal Reserve Chairman Ben Bernanke listens to a question as he testifies before the Joint Economic Committee on Capitol Hill in Washington, Tuesday, May 5, 2009. (AP Photo/Susan Walsh)

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But not going to improve quickly

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Bernanke Sees Slow Recovery, Despite Positive Signs

Still hopes economy will grow by year's end

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Bernanke: Recession Should End This Year

2010 will be 'year of recovery'

Fed Sees High Unemployment All Next Year

Forecast sees it at 8.6% at end of 2012

Bernanke: Recovery 'Is Close to 'Faltering'

He advises Congress not to cut spending

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But not going to improve quickly

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Bernanke Sees Slow Recovery, Despite Positive Signs

Still hopes economy will grow by year's end

We Know What We're Doing, Bernanke Assures Congress

Fed chair defends response to financial crisis

Bernanke: Recession Should End This Year

2010 will be 'year of recovery'

Fed Sees High Unemployment All Next Year

Forecast sees it at 8.6% at end of 2012

Bernanke: Recovery 'Is Close to 'Faltering'

He advises Congress not to cut spending

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