July 21, 2010

  • A d v e r t i s e m e n t
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Federal Reserve chairman Ben Bernanke warned the outlook for the US economy was “unusually uncertain” Wednesday but said the central bank could step in to bolster a faltering recovery.

Bernanke told US lawmakers the world’s largest economy would see only “moderate growth, a gradual decline in the unemployment rate, and subdued inflation over the next several years.”

Underlining the severity of the crisis, Bernanke warned private-sector hiring was still growing at “a pace insufficient to reduce the employment rate materially.”

His comments kicked off two days of hearings in Congress, which is deeply divided over how to deal with high unemployment and a stuttering recovery.

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