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'Formidable Headwinds' Hinder Recovery: Bernanke

Weak credit and labor markets mean recovery will be slow: Fed chair

By Nick McMaster,  Newser Staff

Posted Dec 7, 2009 4:30 PM CST

(Newser) – Ben Bernanke painted a stark picture of the economy today, warning that "formidable headwinds" are working against the incipient recovery. Despite an unexpectedly positive jobs report, the pace of expansion is likely to remain "moderate," the Fed chair said. “Despite the general improvement in financial conditions, credit remains tight for many borrowers,” and the job market “remains weak,” Bernanke said in a speech to the Economic Club of Washington.

Because of the dangers to recovery, the Fed will keep monetary policy loose for the foreseeable future, Bloomberg reports. “Right now we are still looking at the extended period given that conditions remain low rates of utilization, subdued inflation trends, and stable long-term inflation expectations,” Bernanke said.

Federal Reserve Chairman Ben Bernanke speaks at The Economic Club of Washington, Monday, Dec. 7, 2009, in Washington.
Federal Reserve Chairman Ben Bernanke speaks at The Economic Club of Washington, Monday, Dec. 7, 2009, in Washington.   (AP Photo/Haraz N. Ghanbari)
Federal Reserve Chairman Ben Bernanke is introduced before speaking during a discussion hosted by The Economic Club of Washington, Monday, Dec. 7, 2009, in Washington.
Federal Reserve Chairman Ben Bernanke is introduced before speaking during a discussion hosted by The Economic Club of Washington, Monday, Dec. 7, 2009, in Washington.   (AP Photo/Haraz N. Ghanbari)
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COMMENTS
Showing 3 of 13 comments
SilenceDogood
Dec 9, 2009 10:37 AM CST
Yourself; The top 1% of the wage earners pays 90% of the taxes in America and 43% of Americans pay no income tax at all; this is a very lopsided, one-way taxation system that is simply broken. To shout the Democratic chant to “Tax the Rich” is meaningless. If anyone wishes to say America is not becoming a Socialist country and that we are not a welfare state should read the following CBS article. http://www.cbsnews.com/stories...
gsn1234
Dec 9, 2009 4:08 AM CST
SilenceDonothing: Your statistics (assuming they are even correct) are completely useless: Imagine we lived in a society of 100 people, 1 person had $1 Trillion and the other 99 had nothing. Riddle me this: What percent of taxes would the top 1% pay in this hypothetical society? How about 100%!!!! One of the many real question we should be asking is how is that 1% of the population could have acquired so much wealth that - even at income tax rates lower than any other industrialized world - they still managed to account for 90% of all tax revenue? And how is that, in the richest society the world has ever known, 43% of the people could be so poor that they pay no income tax at all? (Of course, your 43% figure is nonsense and - at a minimum - ignores sales tax, social security, medicare, and state taxes).
JonmarkP
Dec 8, 2009 12:51 PM CST
You should move to Somalia-it's a Libertarian's paradise. No taxes, no government, no police or hospitals or fire departments or air traffic controllers, and as much freedom as you can afford. Don't let the door hit you in the ass on your way out, chump.
Politics • Money • US

 
Ben Bernanke • Federal Reserve • recession • US economy • borrowers • monetary policy • financial crisis • Economic Club of Washington • economic recovery • jobs

 
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