June 3rd, 2009
11:49 AM ET
12 years ago

Bernanke: Recovery will be slow

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/04/14/art.cnn.bernake.jpg caption= "Bernanke said he still anticipates that the economy will start its recovery later this year, but cautioned that 'recovery will only gradually gain momentum.'"]

NEW YORK (CNNMoney.com) - Data suggest the economic contraction may be slowing, but the economy is hardly out of the woods, Federal Reserve Chairman Ben Bernanke told lawmakers on Wednesday.

"A number of factors are likely to continue to weigh on consumer spending, among them the weak labor market, the declines in equity and housing wealth that households have experienced over the past two years, and still-tight credit conditions," Bernanke said.

Bernanke said he still anticipates that the economy will start its recovery later this year, but cautioned that "recovery will only gradually gain momentum and that economic slack will diminish slowly. In particular, businesses are likely to be cautious about hiring and the unemployment rate is likely to rise for a time, even after economic growth resumes."

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Filed under: Ben Bernanke • Economy
soundoff (90 Responses)
  1. walleye

    As stated by another famous (if not forgotten by now) American "the economy is fundamentally sound."

    The GOP put us in this mess with their relaxation of govt controls. Now they want to sabotage Obama's efforts to right the ship.

    In a year from now when the economy is starting to turn around thanks to Obama's policys, will all you ranting and raving RepubliKlans be big enough to give the man his due, admit he was right and apologize for your hateful comments? I doubt it. You will find something else to criticize about him. You are all right wing nut jobs who need a moron like Limbarf to lead you.

    June 3, 2009 01:51 pm at 1:51 pm |
  2. Ted Tartaglia

    If you want to call liberals socialists, what do you call pseudo-conservatists? FOOLS!!!

    June 3, 2009 01:52 pm at 1:52 pm |
  3. Al-NY,NY

    and exactly what would all of you naysayers out there do to fix the crisis we are in? Don't tell me, I already know...tax cuts for people and businesses. Less regulation. Less spending....all of which helped us get into the mess we are in now. Stop complaining and come up with an alternative. Until you have one..be nice little dittoheads and go sit in your corner. You need a time-out

    June 3, 2009 01:53 pm at 1:53 pm |
  4. carlo

    I love how all of these "economists" on here post about how the recovery will be nonexistent with names like "teleprompter" (Oh, we really take you seriously when you do that). This is the end result of a bubble that had grown too much too quickly, and it burst. Now, we have to establish an entirely new base for producing wealth in this country. 40% of our GDP was in the financial markets. Everyone had to know that could not last. We don't make anything anymore, thanks to all of the businesses got a cheaper deal in China.

    If anyone is interested, Nixon got us into debt with the Chinese, just like he brought us HMO's. Revisionist history is a terrible thing, isn't it?

    June 3, 2009 02:00 pm at 2:00 pm |
  5. Jamie Blakely

    You're right, Bernanke. The US can never recover from the debt Obama and his demons have wrought trying to buy out banking, industry, health care. What's next, food? The government will soon control every aspect of our lives with one man in particular working his puppets to do his work as we go down the toilet.

    June 3, 2009 02:03 pm at 2:03 pm |
  6. Gary

    To Dan:

    The answer to how we solve our problem is WORK. First, everyone must work. If you don't work you get no money and you can't eat. No more welfare or disability and retirement age is going to have to be 75 to 77. Second, we are all going to have to work for LESS PAY. It is a global market place and we cannot command the salaries that we are used to. We should all cut back our spending 15 to 20% in anticipation of earning 10 to 15% less. Third SAVE. We all have to live below our means so that we can save for a house, car, college or retirement. We need to put money away for an unexpected medical bill. Fourth, BUY AMERICAN! If there is an alternative product made in the US (even if it is called a Honda) we should buy it. Fifth GROW our population through birth rate and legal immigration. If we do all of that then factories will open and jobs will be here. If we allow Unions like the UAW to take control of companies then there is no hope for a recovery. If we let rip-off Wall Street artists like Bernie Madoff to make millions then there is no hope. We need to work harder, more hours and with care for the quality of our work.

    June 3, 2009 02:10 pm at 2:10 pm |
  7. Mississippi Mike

    The what the heck was the "stimulus package" supposed to do? I can tell you what it did do: Create a huge national debt with no way to pay for it and nothing to show for it.

    June 3, 2009 02:17 pm at 2:17 pm |
  8. Candy West Virginia

    Let's all thank bush, cheyney and the rethuglicans for ruining this country and let's give an especially warm standing ovation for lush limpaugh for continuing to spout the failed rhetoric the rethuglicans are so famous for.

    Mich – atleast President Obama is spending money trying to rebuild this country rather than bankrupting us (like bush did) trying to rebuild Iraq.

    June 3, 2009 02:19 pm at 2:19 pm |
  9. Proud DHS radical

    Don't worry folks the recovery will start picking up (for the government anyways) when Obama and his party starts taxing our health care benefits, sodas, carbon emmissions, higher gas taxes and anything else they can dream up to part our money from our wallets.

    June 3, 2009 02:33 pm at 2:33 pm |
  10. dreamer

    Wow folks,as John Lenon once sang "Give peace a chance",everyone is at each others throats dem and repubs.The Hippies had it right in saying Make love not war.Maybie it's time for another culterail revolution to cool things down a bit :-),peace.

    June 3, 2009 02:37 pm at 2:37 pm |
  11. sensible Cape Coral Fl

    HEY: MakesUwonder – What would Mc Cain have done?

    June 3, 2009 02:41 pm at 2:41 pm |
  12. Jimmy the Greek

    Hey "Liberal and Proud of it".... here is the quote of the day:

    Hugo Chavez on National TV:

    "Hey, Obama has just nationalized nothing more and nothing less than General Motors. Comrade Obama! Fidel, careful or we are going to end up to his right."

    PRAVDA (Russian News Org) is mocking the US how quickly it's descending into socialism.

    Chavez is laughing how far LEFT Obama is to him and Fidel.

    But you libs keep defending Obama clueless to the damage being done.

    June 3, 2009 02:41 pm at 2:41 pm |
  13. geecee

    You overly-dramatic skeptics and cynics just can't accept the fact that Obama is our President and is doing a good job, under the worst of circumstances, of trying to get us out of this economic mess left by your heroes, Bush/Cheney. Give it a chance, he has only been in office for under six months. You want miracles, not going to happen overnight. You don't want to believe that Obama can probably get us out of this mess. I truly think you want him to fail and are hoping for it so he can be judged in history as a bad President. That would make all of you haters so very happy. You would be so very disappointed if the man turns out to be one of the best Presidents we ever had, won't you?

    June 3, 2009 02:51 pm at 2:51 pm |
  14. rob

    "Among the tough choices facing lawmakers: deciding what size of government they want going forward and ensuring that tax rates are sufficient to provide enough revenue to balance out the country's spending priorities in the years ahead, Bernanke said."

    He also said increasing debt will result in either huge cuts in Gov't spending or incredibly high tax and interest rates.

    These are the most important statements because he is saying that if we are to have the size Gov't Obama and the Dems in Congress want, we will have to RAISE TAXES by huge amounts to pay for it.

    That is the dirty little secret the Dems won't tell us.

    June 3, 2009 02:53 pm at 2:53 pm |
  15. skyhawkdriver

    The recovery is going to take even longer with the likes of harry reid getting his fingers on the money..$23 million dollars for a railroad to go past brothels??..and charge people $50.00 for the ride??..and yet a privatly owned railroad that has never taken federal money gives people rides for free..we now have the "RAILROAD TO NOWHERE"..are you sure you aren't a part owner of star kist with queen nancy?..way to go harry..hold on a minute while I pull the knife out of my back

    June 3, 2009 02:58 pm at 2:58 pm |
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