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

Bernanke: Recovery will be slow

Bernanke said he still anticipates that the economy will start its recovery later this year, but cautioned that 'recovery will only gradually gain momentum.'

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. Once You Vote Black

    The GOP needs to realize that they have failed the US and that is why gripping solves nothing. It is why Newt had to back track, Miguels statement about being white and spanish and offended is just his tough luck, and nobody cares if Soto... makes you happy or not. You have discraced yourselves and the nation. You don't even have your party in order. A little advice for you is to use the rest of this year to get your house in order, at this point you are not fit for public policy. What is why Obama can spend all he wants without being checked, Newt has to valcilate with one hand, and Soto... will get in while you moan and grown.

    June 3, 2009 12:27 pm at 12:27 pm |
  2. Once You Vote Black

    The GOP needs to realize that they have failed the US and that is why gripping solves nothing. It is why Newt had to back track, Miguel's statement about being white and Spanish and offended is just his tough luck, and nobody cares if Soto... makes you happy or not. You have disgraced yourselves and the nation. You don't even have your party in order. A little advice for you is to use the rest of this year to get your house in order, at this point you are not fit for public policy. What is why Obama can spend all he wants without being checked, Newt has to vacillate with one hand, and Soto... will get in while you moan and grown.

    June 3, 2009 12:28 pm at 12:28 pm |
  3. Middle man

    Jon in California: I guess we should have had a McCain/Palin victory and we would be swimming in King Midas' pool, right?

    From the outset we were advised that with the economic recovery plan that was being laid out, we would see continuous hemorrhage for a while, then the wound would slowly close. Threfeore, although I am not thrilled with the state of affairs this comes as no surprise.

    June 3, 2009 12:30 pm at 12:30 pm |
  4. Lori asks the GOP why Saddam is dead but Bin Laden is Alive?!!

    But Mr. Bernake, what are the Republicans going to do if the economy recovers by the end of this year/early next year? They've been praying for Americans to continue to suffer in hopes of getting elected in 2010 and 2012. Don't crush their dreams. They were mainly responsible for the biggest economic disaster since the Great Depression but yet they want us to believe that John McCain and Sarah Palin (Beavis and Butthead) would have had the economy fully recovered by January 21, 2009. Signs of hope only crushes Republicans dreams. Oh, don't worry Repugs... Maybe you can continue praying for another terrorist attack in America?

    June 3, 2009 12:31 pm at 12:31 pm |
  5. Teleprompter of the U.S.A.

    wait until they start monetizing the debt, by printing money. the result is inflation that will make us all poorer and the creation of a new currency called the greenpeso or ruble.
    -------------------------------–

    They are already doing that. Geithner lied and said they weren't but the proof is already being reported on.

    June 3, 2009 12:32 pm at 12:32 pm |
  6. Liberal and Proud of It dot com

    1. Let us remember that this recession was optional. It did not have to happen. It happened because Conservatives persuaded us to DEREGULATE lending institutions and to fail to regulate hedge funds. It happened because bankers could not resist quick cash even if it created a housing bubble that had to burst.

    2. Conservatism and global corporations, especially lending institutions and hedge funds led us over the cliff. After we bail them out, they will, of course, lead us over the cliff again unless we regulate them.

    3. It is unfortunate that a Conservative Congress and Presidency ratcheted deficit spending up to unprecedented levels during good economic times. Reagan tripled the national debt. Bush1 increased it by 50%. Clinton increased it in the beginning of his term then saw it decrease in the last two years of his term. Bush2 doubled it from $5 trillion to $10 trillion. We should not resort to government borrowing in good times. We should pay the debt down in good times. Then, our good credit will help us during bad times. Conservatives, of course, care nothing about the nation or its economy; they only care about their personal wealth and power.

    June 3, 2009 12:36 pm at 12:36 pm |
  7. Once You Vote Black

    I am so sick of these White Americans crying about how unfair, UnAmerican, Un Everything Obama is and his policies are. You guys need to pick you fights. But you also need to realize that you had controle of the nation for a very long time. If you were so right your president would still be white.

    June 3, 2009 12:36 pm at 12:36 pm |
  8. Bob Lob Law

    If we can put a flag on the moon, we can fix this problem!
    Where is your patriotism Jon? Look for it elsewhere than the seat on your high horse.

    June 3, 2009 12:36 pm at 12:36 pm |
  9. Teleprompter of the U.S.A.

    Jon in California: I guess we should have had a McCain/Palin victory and we would be swimming in King Midas' pool, right?
    From the outset we were advised that with the economic recovery plan that was being laid out, we would see continuous hemorrhage for a while, then the wound would slowly close. Threfeore, although I am not thrilled with the state of affairs this comes as no surprise.
    -------------------------------–

    Your lack of understanding is somewhat frightening. Even Obama (and it was ironic when he said that considering he keeps spending) said we were broke.

    You cannot keep spending when you are broke. Trying to set up straw man by acting like we think we would be swimming in money if McCain won is just a ridiculous argument that no one would reply to because it is an idiotic argument to begin with.

    June 3, 2009 12:37 pm at 12:37 pm |
  10. Once You Vote Black

    If you guys had a better plan you would not be run by a Blackman. Things in this country would have to have gone very wrong for this to have happened. You need to take some time to reflect on how such a turn of events could have ever happened. I mean a real look, not a knee jerk reaction.

    June 3, 2009 12:38 pm at 12:38 pm |
  11. phoenix86

    Recovery will not be slow. It will be non-existant. Obama's and the dems borrow and spending will crowd out private investment and the private sector will not be able to grow, increasing unemployment.

    We are watching a disaster unfold.

    June 3, 2009 12:38 pm at 12:38 pm |
  12. Independent

    In my area, they are selling houses, some people have been called back to work, they are adding on to a College, I guess we are some of the lucky ones....

    At least some of you have forgotten, it was President George W. Bush that signed the bill in 2008 for GM not President Obama....

    June 3, 2009 12:39 pm at 12:39 pm |
  13. phoenix86

    Dear Liberal and Proud of It,

    You are dillusional and really need to read some history.

    June 3, 2009 12:39 pm at 12:39 pm |
  14. Melissa

    Unfortunately, Republicans don't have the patience for "slow" unless its from another Republican. They want everything right this second like all children do.

    June 3, 2009 12:40 pm at 12:40 pm |
  15. Randolph Carter

    Teleprompter wrote: wait until they start monetizing the debt, by printing money. the result is inflation that will make us all poorer and the creation of a new currency called the greenpeso or ruble

    This was actually brought up at the meeting of the vast left wing conspiracy last week. We voted overwhelmingly to call the new world currency Bob. Have a nice day!

    June 3, 2009 12:41 pm at 12:41 pm |
  16. New Yorker

    Polar Bears Against Palin – Or maybe just silence comments that you prefer not to hear? I can assure you that the left is working on silencing those who don't agree with their plans.

    June 3, 2009 12:41 pm at 12:41 pm |
  17. Once You Vote Black

    Even Obama (and it was ironic when he said that considering he keeps spending) said we were broke...

    Yes, but he said that while reading his Teleprompter. You cannot have it both ways. If you cannot trust a POTUS who uses a Teleprompter then why are you quoting him? If you can, then why are you teasing him for using it?

    June 3, 2009 12:41 pm at 12:41 pm |
  18. ObamaShrugged

    Who is going to invest in an economy de-stabilized by a socialist administration?

    Who believes the UAW can manage a car company better than the current leadership?

    Who is John Galt?

    June 3, 2009 12:43 pm at 12:43 pm |
  19. Teleprompter of the U.S.A.

    At least some of you have forgotten, it was President George W. Bush that signed the bill in 2008 for GM not President Obama….
    -------------------------------–

    What are you talking about? Obama has given GM billions and then he decided (after being told for months by people smarter than him which is pretty much everyone) that they needed to go through bankruptcy.

    And actually Bush passed the buck on GM and Chrysler. He was criticized for it, too, rightly. But, no one could foresee Obama giving GM billions and then having them declare bankruptcy. Some transparency. Where did the money go?

    June 3, 2009 12:44 pm at 12:44 pm |
  20. Teleprompter of the U.S.A.

    Yes, but he said that while reading his Teleprompter. You cannot have it both ways. If you cannot trust a POTUS who uses a Teleprompter then why are you quoting him? If you can, then why are you teasing him for using it?
    -------------------------------–

    So, you're saying he has no clue what is on his teleprompter, he just reads it?

    That's not the same as what I'm teasin him for, actually.

    June 3, 2009 12:45 pm at 12:45 pm |
  21. Middle man

    Teleprompter: We all have differences of opinion and I respect yours, but neither you nor your twin Jon have one suggestion to make. Let's hear it!!!

    June 3, 2009 12:46 pm at 12:46 pm |
  22. Teleprompter of the U.S.A.

    This was actually brought up at the meeting of the vast left wing conspiracy last week. We voted overwhelmingly to call the new world currency Bob. Have a nice day!
    -------------------------------–

    It's not a conspiracy. They're doing it right out in the open because no one will call them on it.

    Media objectivity – died during the 2008 election. It was on life support before then, though.

    June 3, 2009 12:47 pm at 12:47 pm |
  23. Once You Vote Black

    that no one would reply to because it is an idiotic argument to begin with.

    Funny that you responded. Perhaps that makes you an idiot. If you think about it Obama is doing the one thing that will save the jobs that exist and stands a chance of creating new jobs. Even more Funny is that he is doing it as a result of the GOP last in office. Bush started Tarp, Bush watch the Auto Industry Tank, Bush was there when China bought our dept. Obama is fixing things, it will take time. In the mean time just keep going after him for using a Teleprompter, Appointing Soto..., or calling him a Muslim. This way we can have him for 8 years and then another Dem for 8 years after that.

    June 3, 2009 12:48 pm at 12:48 pm |
  24. Shari, NY

    None of us is happy with the current state of affairs which was being molded for almost a decade, however I have faith. There are small positive steps being made in that layoffs are abating. Rome was not built in a day – neither will the US (this time around).

    June 3, 2009 12:52 pm at 12:52 pm |
  25. Enough

    Ah, the excuses are already starting to flow. What he means to say is the trillions of dollars spent did nothing to help the economy.

    June 3, 2009 12:52 pm at 12:52 pm |
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