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.
Most Popular Stories
- Ex-Mobster to Bulger: Just Say Sorry
- Google Stock Split Ahead
- Guns Are Hot in California
- El Paso Symposium Offers Help to Startups
- Small Businesses Hiring, but Worry About Expense
- OSH Selling Most of Its Stores to Lowe's
- Home Lending Offices Not Seeing Effects of Pickup
- How Green Is Google?
- Florida Enterprises Look to Costa Rica
- San Francisco Renters Battle Over Conversions