Tags:

Bernanke Glum on Growth; No Hint of More Stimulus

Tuesday, 07 Jun 2011 04:57 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

WASHINGTON (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke on Tuesday acknowledged a slowdown in the economy but offered no suggestion the central bank is considering any further monetary stimulus to support growth.

He also issued a stern warning to lawmakers in Washington who are considering aggressive budget cuts, saying they have the potential to derail the economic recovery.

A recent spate of weak economic data, capped by a report on Friday showing U.S. employers expanded payrolls by a meager 54,000 workers last month, has renewed investor speculation that the economy could need more help from the Fed.

"U.S. economic growth so far this year looks to have been somewhat slower than expected," Bernanke said in remarks prepared for delivery at a banking conference in Atlanta.

"A number of indicators also suggest some loss in momentum in labor markets in recent weeks," he added.

However, Bernanke argued the latest bout of weakness would likely not last very long, and should give way to stronger growth in the second half of the year.

Citing a recent spike in U.S. inflation, Bernanke said it was a worrisome trend but, like the economic softness, he predicted the trend would be transitory.

He argued that weak growth in wages along with stable inflation expectations gave him comfort that the economy was under no immediate threat of an upward price spiral.

On the budget, Bernanke repeated his call for a long-term plan for a sustainable fiscal path, but warned politicians against massive short-term reductions in spending.

"A sharp fiscal consolidation focused on the very near term could be self-defeating if it were to undercut the still-fragile recovery," Bernanke said.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved