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. ALL I CAN DO IS BLAME SOMEBODY ELSE FOR MY OWN PROBLEMS IN LIFE

    People, when the government creates jobs on there payroll = LESS MONEY IN YOUR POCKET

    OBAMA has added lots of jobs to the government payroll

    June 3, 2009 12:55 pm at 12:55 pm |
  2. ray ray

    @ melissa whines,

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

    ------

    Children need "mothering". Children need everything given to the them. Children don't earn money – they spend money.

    Gee – WHO does that sound like???

    Liberals!

    Nanny-state
    Government Welfare
    Spend Spend Spend

    June 3, 2009 12:55 pm at 12:55 pm |
  3. Linda from Minnesota

    Teleprompter of the USA – you must be one of Rush's dittoheads. He disrespectfully calls the Chinese, Chicomms as well. And the Republicans wonder why we have lost status in the world. We don't respect anyone.

    June 3, 2009 12:56 pm at 12:56 pm |
  4. makesUwonder

    We're in the tank folks and Obama, along with the Obamablind people put us there. And, you all have made a very sad future for our children and grandchildren. Wonder if Obama and his people sleep well at night.

    June 3, 2009 12:57 pm at 12:57 pm |
  5. sharper

    Hillary, Pelosi and Geithner are begging money from the Chinese and Obama is begging from Mideast Kings. Obama tries to recover the economy based on very very vulnerable fundamental, debts.

    Even if he is able to recover the economy in a very short time, it's just a matter of time before it back collapses even much deeper because of the debts. I just hope this country won't go bankrupt or for sale because of him.

    June 3, 2009 12:58 pm at 12:58 pm |
  6. Dutch/Bad Newz, VA

    @ Teleprompter of the U.S.A. & the rest of the right wing loonies

    Where was all of this criticism during the last 8 years of deregulation? Things that make you go hmmmmm.....

    June 3, 2009 01:01 pm at 1:01 pm |
  7. I laugh at Limbaugh daily

    I dont believe Bernacki.Dont be fooled by Limbaughs paid street teamers on here.There are only two or three people spewing the same garbage everyday.They use a number of names to make you think there all a mutitude of rightwing nut cases.Ignore them and dont respond to anything they say.They are trying to waist your time.

    June 3, 2009 01:03 pm at 1:03 pm |
  8. Jon in CA

    Middleman,

    You wrote,

    "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!!"

    EASY!

    1) Stop the nationalization of ANY private corporations!
    2) Let mismanaged corporations use bankruptcy to reorganize.
    3) STOP creating NEW social welfare programs
    4) DO NOT grant amnesty to 30+ million illegals making them eligible for social security benefits and other govenment programs
    5) OPEN UP ANWR, California Coast-line and other places for drilling
    6) CANCEL the $50 Billion in foreign aid
    7) Bring our troops home and let Iraq, Afghanistan, and Pakistan deal with Islamic extremism. We can use covert operations to "neutralize" any significant threats.

    THAT would be a great start!

    June 3, 2009 01:04 pm at 1:04 pm |
  9. John Jardee

    He Doubled the $$ supply, we now have a deficet 4+ times Bush's record deficet. We are all screwed, especially my kids and future grandkids. I wish I could print $$ and spend at will. I have to live within my means, why can't the Obama administration and the State of CA in which I have lived my whole life (56 years) do the same?
    Would these idiots spend their own $$ like this? If anybody had a brain these guys would be long gone !!!!!

    June 3, 2009 01:07 pm at 1:07 pm |
  10. RH

    This is a self-fulfilling prophecy from Bernanke. The length of a recession is pure psychology.

    By the way, I am SO sick of the cliched phrases surrounding this issue. If I hear one more person say, "...out of the woods," I may withdraw all my cash and go live in the woods.

    Also, END THE FED!, June 3rd, 2009 11:54 am ET is a total idiot. Even if the gold standard was still in effect, it's only worth what someone says it's worth. Wake up.

    June 3, 2009 01:12 pm at 1:12 pm |
  11. Dawn in Pa

    I am going to say this again, When Clinton left the WH, he had about a half a trillion dollar surplus and a projection of 1.5 trillion dollars in the black, by 2010. Bush enter the WH. Oops where did all the money go?

    Handing out a blank check to Pakistan.. Not putting the two wars into the fiscal budget. Give me a freaking break, and then I read it is the Democates fault, they were in power for two years, but guess what, BUSH had the POWER to VETO!

    So before you start to critize Obama, go back 8 years and see where that money went too.

    June 3, 2009 01:15 pm at 1:15 pm |
  12. Mari( maybe one of my comments will be posted)

    Considering the Bush Disaster, and the Crash of 2008. I am not surprised that recovery will be slow.

    Took Bush 8 years to undo the robust economy he inherited from Clinton!

    June 3, 2009 01:17 pm at 1:17 pm |
  13. Once You Vote Black

    Wonder if Obama and his people sleep well at night.

    A, yes, we sleep good knowing that Obama has the Helm. He took it out of the foul cluch of a party that knew not what to do with the power it was trusted with.

    Enough says the money has not done any good but at least 10,000 jobs have been created in NC already. We are not out of the woods, but if you dry your eyes you will see that jobs are being created. If you move out of the boonies perhaps you can get one.

    June 3, 2009 01:18 pm at 1:18 pm |
  14. Wake up America

    Recessions cylce through on their own. However, this one will last longer and cost taxpayers because those in control thought spending trillions and trillions was the cure. Appears alot of the so called job creation was only temporary. Jobs created by government are not jobs created, they are paid for by taxpayers as well. This is what you get when you vote Democrat!

    June 3, 2009 01:20 pm at 1:20 pm |
  15. 4 and The Door

    @Independent who posted, "At least some of you have forgotten, it was President George W. Bush that signed the bill in 2008 for GM not President Obama…."
    ______________________________________________________

    Actually, on Friday after the Tuesday elections Harry Reid, Nancy Pelosi and other Democrats ( No republicans invited ) met with the 3 CEO's from Detroit to talk about the $25 billion they would be getting from the new government. There were ear to ear smiles on both sides of the table. I'm sure this meeting was planned well before Tuesday.

    President Bush did sign the bill for GM but only under pressure from Democrats. After the election, in several ways he cooperated with the new administration and this was one against his better judgement.
    Based on the administration's activities since then, can you really with a straight face say that the auto bailouts were Bush's idea???

    June 3, 2009 01:22 pm at 1:22 pm |
  16. Gary in VA

    President Obama must be doing something right. If we use the DOW as a guide look at where it was when he took office and where it is today. Somebody has to spend money to keep confidence in the economy. The government at present day is in the position to allow the economy to continue to flow. I am certain that other aspects of the economy will follow. Patience is the keep people.

    June 3, 2009 01:24 pm at 1:24 pm |
  17. Had it

    The lack of intelligent posts from the Liberals on this board just goes to show the future of this country is in serious trouble. You all want everything and everyone else to provide it for you. Problem is, who is going to pay for it? Obviously not you, that would require you get a job and pay taxes, which is against your beliefs.

    June 3, 2009 01:24 pm at 1:24 pm |
  18. Bill

    what a crock. Just servicing the national debt that the Obama crew is increasing astronomically is going to take the wind out of any economic recovery that might have happened. The best thing that could happen is to stop the government spending immediately and let market forces drive the economy. This will weed out the weak, and allow the strong to survive. Obama's meddling in the economy is not going to improve things in the long run. It is the road to true financial ruin for this country.

    June 3, 2009 01:28 pm at 1:28 pm |
  19. Marc

    Teleprompter of the U.S.A. – First of all how come you always manage to get at least four posts in each blog you decide to show us your lack of intelligence and/or memory?
    Second, when was that this government said that things would not be bad? They are being honest from day one dude, 'things WILL get WORST before they get better', remember? What Bernanke said today it's absolutely no big news.
    'You cannot keep spending when you are broke'... then what is the government supposed to do? Watch the economy tank without moving an inch to prevent it? No. 'Tax cuts' when there's no money available to spend on anything (taxes included) anyway? Nope.
    Is the govt. claiming that the spending is good? NO. In a medium to long term it IS a bad thing, in the short one it is the only real and practical option left. So it's not about spending, but HOW the money is spent.

    June 3, 2009 01:32 pm at 1:32 pm |
  20. IndepndentAmerican

    Recovery is on its way. Yes, it will take time. But recover we will! I am already seeing the Recovery in my business, we have several new clients and have not had to lay off any one!

    People forget that it took Bush eight years to undo the robust economy he inherited from Clinton!

    June 3, 2009 01:37 pm at 1:37 pm |
  21. Steve, New York City

    Hey "makesuwonder" –
    have you spent the last 8 years, sitting in a box?
    You REALLY think that a guy, who has been president for scarcely 5 months, is responsible for this economic mess?

    Let me guess, you were one of those people who became terrified, when Dick Cheney made those asinine comments about "yellow-cake from Niger"

    June 3, 2009 01:38 pm at 1:38 pm |
  22. witch

    Where I live that have started fixing our roads. People are buying houses and my neighbor just bought a new car. My boyfriend is getting overtime and I have a job interview. I feel hope and I feel proud to be an American. But i am tired of the garbage and stupid remarks that so many people are posting.

    June 3, 2009 01:39 pm at 1:39 pm |
  23. stormerF

    Why has the FED raised the bar for banks to pay back the TARP? After the banks passed the Stress test,now the Fed says they need more money in reserve before they pay back the TARP? What kind of Crapola is that. We do not want to run banks its not what our Government was set up for. Never has government run a business sucessfully,NEVER.... Obama has slowed down the recovery of the econmoy by taking over the Auto industry and the Banks..Geithner and Obama need to get out of the Business of taking over Business,and get back to being our Government.

    June 3, 2009 01:42 pm at 1:42 pm |
  24. dominican mama 4 Obama

    "The country's near-term actions - which include dedicating $700 billion to stabilize the financial system and a $787 billion economic recovery package - were necessary, he said"

    President Obama said he would seek the advice of the best economists before making any financial decisions. While a lot of you bloggers were crying doom and gloom, he maintained a level head and acted in the best interest of the country. I know you're only used to our leaders acting in their OWN best interest, but it change HAS come to America....in more ways than one.

    June 3, 2009 01:44 pm at 1:44 pm |
  25. dominican mama 4 Obama

    Those of you that continue to insist that the steps that Obama has taken will NOT improve the economy lead me to believe that just like the non-leaders of your party you are more interested in having Obama fail. Even if that means that the country goes down the toilet with him. Tsk, tsk. And you call yourselves Americans. You are the worst kind of terrorist there is.

    June 3, 2009 01:49 pm at 1:49 pm |
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