The US economic recovery has decelerated in 2012 and continues to be held back by high unemployment and worries about the health of the eurozone, US Federal Reserve Chairman Ben Bernanke said Tuesday.
"The reduction in the unemployment rate seems likely to be
frustratingly slow," the central bank head told a Senate committee in
remarks on the US economy. He said unemployment was likely to remain
above 7 per cent through 2014.
Uncertainty in Europe has weighed on US manufacturing, and
continues to threaten to spillover onto the broader global economy
with the threat of a worsening situation weighing on the economic
outlook, he said.
"Financial strains associated with the crisis in Europe have
increased since earlier in the year, which ... are weighing on both
global and domestic economic activity," he said.
Bernanke indicated the Federal Reserve was willing to take further
action to bolster the US economy, but did not provide specific
details about what it might do. Minutes of the Fed's last meeting
indicated the central bank was discussing the possibility of further
stimulus.
