BGN Entrepreneur

The federal Reserve ehairman, Bernanke, is seeing “tentative signs of stabilisation” in the US economy.
The claim came as be promised that the central bank is poised to tighten monetary policy to combat inflation when the time comes. Mr Bernanke, delivering his semi-annual economic testimony on Capitol Hill warned, however, that persistently high unemployment rates could hurt consumer confidence and slow the pending recovery.
In an upbeat and at the same time measured assessment of the state of the American economy, the central bank chief also said that it was possible that the recent stabilisation in household spending could prove to be “transient”.
Mr Bernanke also admitted that while he believes that housing market has yet to bottom out, foreclosures should peak in the second half of this year and decline as the market begins to right itself in 2010.
The Fed chairman, speaking before the House Financial Services committee, also will lead it to eventually extricate itself from ＄1.75 trillion of asset purchase program, while stressing that interest rates will need to remain low for an extended period.

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