August 2nd, 2010
11:57 AM ET
4 years ago

Bernanke sees 'moderate growth,' but a long road to recovery

 Federal Reserve chairman Ben Bernanke said Monday the U.S. economy has stabilized, but that complete economic recovery is a ‘considerable’ way off.
Federal Reserve chairman Ben Bernanke said Monday the U.S. economy has stabilized, but that complete economic recovery is a ‘considerable’ way off.

New York (CNNMoney.com) - Federal Reserve chairman Ben Bernanke said Monday the U.S. economy has stabilized, but that the nation has a long and bumpy ride ahead to a complete economic recovery.

Speaking to politicians attending the annual meeting of the Southern Legislative Conference in Charleston, S.C., Bernanke said the nation's economy is growing at a "moderate" pace, but has a "considerable way to go to achieve a full recovery."

The Fed chief also focused on the way that the downturn has taken a severe toll on state and local budgets, forcing them to make significant cuts that are in part to blame for the sluggishness of the national recovery.

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Filed under: Ben Bernanke • Economy • issues
soundoff (29 Responses)
  1. Larry

    Bernanke always has a way of telling us the obvious.

    August 2, 2010 12:05 pm at 12:05 pm |
  2. sister of a soldier

    Obviously, he is out of touch with businesses going into the double dip phase of the recession and the trickle down effect from big businesses that are sitting on their assets worried about what this administration will do next. A small business laying off 60 people this week, cutting management salaries by 35%, a moratorium on raises does not show me improvement and this is a company vital to the pharma industry, How do you account for the loss of 31,000 pharma jobs in Pa? Berneke is smart enough to understand it is the private sector that creates job and fuel the economy but it is exactly the private sector being punished by Obama's agenda. His taxes equal jobs lost! How could they report the auto industry turnaround when GM took TARP funds to pay off its government stimulus debt...sounds like the old "robbing peter to pay paul". GM is still Government Motors.
    Get the truth and not the spin!

    August 2, 2010 12:07 pm at 12:07 pm |
  3. Fair is Fair

    Gee... looks like we got our TRILLION dollars worth, huh? Heck of a job, Obama.

    August 2, 2010 12:11 pm at 12:11 pm |
  4. Randolph Carter, I'm no expert, but...

    Thank God corporate profits are back to where they were before the recession. I was starting to worry about the top 2%. Now they can continue weaseling out of paying taxes, hire more H1B visas and create more jobs in China and India. Oh well, at least we still have lots of jobs fighting the Global War on Terror (TM) and spying on eachother. Have a nice day!

    August 2, 2010 12:17 pm at 12:17 pm |
  5. DENNA

    It's too bad that we are not patient. It took quite awhile to get into this mess, but now America wants things to be good again NOW. No. it's not going to be good for awhile. We just have to be patient.

    August 2, 2010 12:17 pm at 12:17 pm |
  6. ThinkAgain

    My suggestions to help with our country's finances:

    1. Raise taxes on the wealthiest back to the rates under Ronald Reagan to 39%.

    2. Eliminate the $90,000 income cap on FICA contributions.

    3. Collect the unpaid taxes on all the money wealthy Americans have hidden in Swiss bank accounts (and release the names of the owners of those accounts).

    The wealthy and corporations of this country are getting away with far too much – and it’s time they stepped up and paid their fair share in helping our country get back on its feet.

    They take their tax breaks and build factories overseas where labor is cheap and environmental regulations are non-existent. All they care about is money, and to heck with the rest of us.

    August 2, 2010 12:17 pm at 12:17 pm |
  7. Rick McDaniel

    The soonest we will see any real measurable improvement in this economy........given that the right measures are taken by government.......will be 2014.

    Until then, it is going to be an excruciating struggle for Americans who are unaccustomed to such struggle.

    August 2, 2010 12:21 pm at 12:21 pm |
  8. Timothy McVeigh would have been a teabag leader today

    Old Ben is the biggest thief since Bernie Madoff.

    August 2, 2010 12:35 pm at 12:35 pm |
  9. Henry Miller, Libertarian

    If Ben Bernanke is seeing "moderate growth" in the economy graph, he needs his eyes checked for astigmatism.

    And, yeah, it will be "a long road to recovery," a road that won't even start until people and businesses regain confidence that Obama and the far Left aren't going to try to tax away every dime that isn't safely hidden away somewhere–and that, at the very earliest won't happen until November, assuming the Reps win enough seats in Congress that people can start to feel safe from Congress.

    The the most dangerous common enemy the people of this country have right now is their own government.

    August 2, 2010 12:46 pm at 12:46 pm |
  10. thor

    Bernanke is setting this country for more severe economic troubles down the road. When you keep interest rates artifically low for a long period of time in order for the government to finance it's national debt you'll pay for it later with inflation that will be uncontrolable.

    August 2, 2010 12:52 pm at 12:52 pm |
  11. Chessnutz of Liverpool NY

    The fox is in charge of the hen house for sure.

    END the FED!

    August 2, 2010 12:52 pm at 12:52 pm |
  12. DagnyTag

    Is Count Baracula the single most anti-profit, anti-business, anti-capitalist "president".....ever? Just wondering who could lay claim to that throne quite like he can? Bernanke mentions 'state and local budgets suffering'; what about the devestation of the private sector via Baracula's vicious blood$$-sucking bat bite?? The only reason state and local budgets are suffering is because they blew right through all of the STIMU-LESS back-filling/front-loading of govn't payrolls (fed, state, local) and pork buyouts, paybacks, exponential government expansion, union bribes, kick-backs, wheel-greasing, nepotism, Demagoguery, etc. Progressive Liberal "Ideology" = butt mud.

    I'm way off? Jobs anyone? 10% unemployment (a very "kind" figure, to say the least; it's actually far worse in reality)? No one wants to do business with 'Boy Robin Hood, the Redistributor' and his 'Corrupticago A.$.$ Clown Parade. It's stunning how Socialism failed miserably, yet this new evil, cancerous rash that we've had to endure (a clear, utter, pathetic failure) has been able to rear its ugly head and once again, plague society with its abhorrent, viciously regressive "logic". "Central Planning" will never _EVER_ work anywhere near as well as the free market, but ignorance is bliss. Come November there will be some education on this matter.

    August 2, 2010 12:53 pm at 12:53 pm |
  13. cover-up...

    Bernake sees moderate or slow growth...word of cover-up to failed policies of this administration.....the White House thinks by coming out with their own rhetoric of failed policies all is well.........................!

    August 2, 2010 12:56 pm at 12:56 pm |
  14. Naqib

    Unemployment will not change for at least a year... they got the extension so they don't have to start looking for work for another ten months...

    Of course most of the Dem leadership will start looking for work in November

    August 2, 2010 01:01 pm at 1:01 pm |
  15. stacey lacour

    August 2nd, 2010 1:07 pm ET
    Your comment is awaiting moderation.
    I am only a Central Louisiana resident. No expert on any subject. I have not even been into the southern Gulf areas since the oil leak. I feel that this is what is referred to in the bible as God, turning the waters of the earth into blood. I am no religon expert, not even someone who goes around yelling to people to repent. But there are so many areas being affected, and now there is another oil leak in a lake in the northern US area. It is killing fish, and water life, plants, etc. If everyone will go into their bible and read what is to come, the things are stacking up. The fires in Russia, the continued move that Iran is making on the rest of us. Wars in areas and rumors of wars. People, it is like buying health insurance before you get sick. Pray for us all, each other, and our earth and we are just purchasing insurance for our eternity.
    Please yall, start to pray, daily, hourly if you can remember to. It can only help. The non believers can pray, just to cover all bases. What can it hurt? And those of us who believe, we know the good that can come from it. The ladies from Garabandal, Spain, Medjughore, etc are bringing messages that tell us over and over to get right. To pray, to behave. Why not make an experiment out of it. Let's all just try to pray for each other and our government officials and see what happens

    August 2, 2010 01:16 pm at 1:16 pm |
  16. Fair is Fair

    "Eliminate the $90,000 income cap on FICA contributions."

    Ummmmmm.... "contributions"???? Then I assume you'll want a corresponding raise on the cap on that a social security beneficiary can collect at retirement, correct? You do realize there is a cap on that side of the equation, right?

    Oh, by the way... does the employer continue to pay the match as well? Gee... that's a nice 6.4% penalty on the business owner... small, medium, large, and self-proprietor business alike. Your plan is sure to be a big-time jobs creator, huh?

    Why not take it just one step further? Let's say that after someone pays into social security for their entire life, we check to see if he or she really "needs" the money when they retire, OK? Let's just let the government keep 6.4% of a person's lifetime earnings plus the 6.4% employer match, right?

    PLEASE stay away from a voting booth.

    August 2, 2010 01:25 pm at 1:25 pm |
  17. Orlando Patriot

    Those who have studied economics, and know how an economy works, knows there is only ONE way to grow an economy and that is for the PRIVATE SECTOR business to grow. As you learn in economics you CUT taxes when time are bad (to stimulate the economy) then RAISE taxes when the economy is going great to repay the monies used in the tax cuts and SLOW down the economy. ANYBODY who says to RAISE taxes while we are in the worst recession since the Great Depresssion is nothing less than an idiot and a fool.

    I suggest you take an economics class BEFORE embarassing yourself in the future. Remember the old saying "it is best to keep you mouth shut at the risk of some believing you are a fool than to open your mouth and remove all doubt". Economics 101: Lower taxes when economy is weak and raise taxes when economy is strong. If Obama had taken Economics 101, and followed the advice of every Economics textbook in the country, this country would be growing significantly by now. Thanks Obama for CREATING the worst recession since the Great Depression.

    August 2, 2010 01:28 pm at 1:28 pm |
  18. Sniffit

    It's quite simple GOPer strategery:

    Smell a loss coming in the run for POTUS and Congress? Why, just break the economy sufficiently that there's no way the next administration and Congress can fix it in 4 years.

    August 2, 2010 01:28 pm at 1:28 pm |
  19. Sniffit

    "that isn't safely hidden away somewhere"

    And there you have it...a lovely admission straight from the conservative horses' mouths. But hey, all you "real Amurikans"...I'm certain that putting your money in off-shore accounts to avoid your tax liabilities and encouraging giant corporations to do so too, that's the patriotic way to exalt in your Amurikan citizenship, right?

    August 2, 2010 01:32 pm at 1:32 pm |
  20. BeverlyNC

    I agree – we are on the road to recovery due to the leadership of President Obama. Had Republicans been in charge we would be in the worst Depression of our history.

    You cannot fix a decade of stupidty, fraudulent wars, 700B in more debt to give unfunded tax cuts to the wealthiest Americans, tax subsidies for the OIL companies who make more profit in 1 quarter than our goverment takes in in taxes and end corporate abuses of the American people all at once in one magic sweep. it takes time to undo all the Republican failed policies and pure greed that destroyed our nation.

    If you want America to keep moving forward you will stand up and vote for the Democrats who have stood up for you and DELIVERED real and solid solutions to help the PEOPLE. They have worked hard for us. Republicans have done NOTHING but whine, lie, vote NO on every single piece of legislation regardless who it hurt, and acted with treason and total non-patriotism in working to make America, its People and our President intentionally fail. They don't deserve to serve in our government when they hate America so much.

    Yes, President Obama will continue to do the right things to keep America and We the People on the road to recovery but we have to use OUR VOTE in November to put even more Democrats in Congress so we can stop the Republicans games and move more quickly in rescuing our own People.

    August 2, 2010 01:33 pm at 1:33 pm |
  21. Sniffit

    "Get the truth and not the spin!"

    Indeed. 31% of small businesses reported hiring in June/July as opposed to 6% a year prior to that.

    August 2, 2010 01:34 pm at 1:34 pm |
  22. vwrtb

    Thanks for supporting our American auto workers republicans... You are true patriots... vote no to the party of no in November!

    August 2, 2010 01:41 pm at 1:41 pm |
  23. Steve (the real one)

    Randolph Carter, I'm no expert, but... August 2nd, 2010 12:17 pm ET

    Thank God corporate profits are back to where they were before the recession. I was starting to worry about the top 2%. Now they can continue weaseling out of paying taxes,
    -------------–
    Randolph Carter ,

    If corporations are weaseling out of paying taxes, isn't that partially the faults of the House and Executive branch? The House writes tax law and has the power to close any loop holes in it. The Executive branch enforces tax law. The question why are they (the House and the Executive Branch) not doing it? When both are loaded down with tax cheats, what does THAT say??? Have a GREAT day!

    August 2, 2010 01:42 pm at 1:42 pm |
  24. vwrtb

    We have seen that tax breaks only create jobs in china faster... That tax us out of jobs is a little hollow now... We are not falling for your trickle down idea any longer... Can you come up with a new fear tactic... Oh yea illegal immigration... Give it up republicans... Pathetic.. Vote no to the party of no in November!

    August 2, 2010 01:46 pm at 1:46 pm |
  25. Doyle Wiley, MI

    Considering where the economy was headed, stabilized is a huge improvement. For those of you that are angered about the current state of the economy please remember President Bush and the Republicans put us here. President Obama is cleaning up their mess, and yes just like it took time for the Republicans to create a failed economy it will take as much time, if not longer, to correct the economy.

    As you vote for our future leaders and should take a little time to consider how has your best interest at heart.

    August 2, 2010 01:51 pm at 1:51 pm |
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