“Growth next year seems unlikely to be much above its longer term trend,” he said, according to the Post. He added that “job creation may not exceed by much the increase in the size of the labor force, implying that the unemployment rate will decline only slowly.”
In addition, prices have risen about 2 percent so far this year, while inflation is up just 1 percent, and that trend is expected to continue, the report said. Bernanke said that the latter rate is too low given the Fed’s mandate to improve the economy, and the risk of deflation is currently higher than the Fed would like.
Many financial experts have speculated that the continued high levels of unemployment could contribute to some of the credit problems nationwide, including not only credit card worries but also foreclosure.
Similar Posts:
- Stocks break pattern, rally in last hour to close up; gold closes at record high
- American consumer spending stagnated in May
- ECB vs Bank of England
- Consumer confidence is waning: index
- Although jobs increase in April, month sees higher unemployment rate
