Federal Reserve Chairman Ben Bernanke have suggested US economic conditions are still too weak for the central bank to pull back on its vast monetary stimulus, despite a welcome drop in the jobless rate.
The Fed chief, also warned about the dangers of record US budget deficits. But he indicated sharp spending cuts in the short term could cripple the recovery.
Acknowledging a recent pick-up in the economy, Bernanke said a drop in the jobless rate to 9 per cent in January from 9.8 per cent in November, was "grounds for optimism."
However, he said hiring is still anemic and noted that the economy has made up just over one million of the more than eight million jobs lost during the recession.
The Fed chief, also warned about the dangers of record US budget deficits. But he indicated sharp spending cuts in the short term could cripple the recovery.
Acknowledging a recent pick-up in the economy, Bernanke said a drop in the jobless rate to 9 per cent in January from 9.8 per cent in November, was "grounds for optimism."
However, he said hiring is still anemic and noted that the economy has made up just over one million of the more than eight million jobs lost during the recession.
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