Summary Box: Bernanke sees economy nearing a recovery, but financial problems persist
By APFriday, August 21, 2009
Summary Box: Bernanke sees economy near recovery
WHAT HAPPENED?: Federal Reserve Chairman Ben Bernanke offered his most optimistic view on the economy since the financial crisis struck. He said there’s a good chance the economy will start growing again soon. But consumers and businesses are still having trouble getting loans.
WHAT’S IT MEAN?: The upbeat assessment was consistent with recent observations by the Fed. With the economy stabilizing, the Fed has felt free to take small steps toward pulling back some emergency programs intended to strengthen the financial system and the economy.
WHAT’S NEXT FOR THE ECONOMY?: Tough challenges still lie ahead, Bernanke acknowledged. Strains in markets worldwide persist. Banks will face further losses on bad investments. And credit could remain tight.
