Economy 'not yet out of woods': US Fed chief

Top Stories

»	Need good leadership to realise vision of Viksit Bharat: PM Modi at SOUL Conclave
»	India’s fruit exports break new ground in rich markets as Centre’s GI tags drive growth
»	Rabi 2024 clocks 1,132 LMT wheat production, ample availability in country: Centre
»	PM Internship Scheme Round 2 with over one lakh opportunities open for applications
»	Centre inks over Rs 1,220 crore contract with BEL for 149 software-defined radios

IANS | 08 Apr, 2010
The US economy seems to be recovering but it is "far from being out of the woods," Federal Reserve Chairman Ben Bernanke said on Wednesday.

In prepared remarks to business people in Dallas, Bernanke said that the financial crisis, the worst one since the Great Depression of 1930s, looks to "be mostly behind us."

"The economy seems to have stabilized and is beginning to grow again," he said. "But we are far from being out of the woods."

Many Americans are still grappling with unemployment or foreclosure, or both and cities and states are struggling to maintain essential services, said the Fed chief.

Although much of the financial system is functioning more or less normally, bank lending remains very weak, threatening the ability of small businesses to finance expansion and new hiring, Bernanke added.

In the speech, Bernanke said some of the toughest problems are in the job market.

"Although layoffs have eased in recent months, hiring remains very weak," said Bernanke, adding that more than 40 percent of the unemployed have been out of work six months or longer, nearly double the share of a year ago.

"I am particularly concerned about that statistic, because long spells of unemployment erode skills and lower the longer-term income and employment prospects of these workers," said the Fed chief.

The Federal Reserve announced March 16 to keep the federal funds rate at historic low level of zero to 0.25 percent for "an extended period" to boost the economic recovery.