|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    20th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

All Financial News feed All Financial News

Fed Chairman comments on unemployment and deficit

Bookmark and Share

by Kay Mitchell

Federal Reserve chairman Ben Bernanke has warned that stubbornly high unemployment will remain.

Mr Bernanke said the weak labour market means a recovery is not yet “truly established.”

His comments come despite the drop in the US unemployment rate last month.

Last week, the Labor Department reported the unemployment rate in the US fell from 9.4% in December to 9% in January – confounding expectations of a rise to 9.5%.

However, the large fall was attributed to jobseekers giving up looking for work, so they ceased to be classified as unemployed.

The Fed Chairman said it will take around a decade to return to a sustainable unemployment rate of 5%-6%.

Mr Bernanke also expressed concern for the budget deficit. The current budget deficit stands at 9% of GDP and is projected to fall to 5% in 2015.

However, like many other economies, tough austerity measures introduced to trim the budget deficit could hamper economic growth and slow the economic recovery.

Meanwhile, he said US inflation remains quite low – vastly different from other major economies who are battling with rising inflation as food and commodity costs soar across the globe.

Discuss this in the Finance Markets forums

Story link: Fed Chairman comments on unemployment and deficit

News posted: February 9, 2011

Financial Services:

Related financial stories to: Fed Chairman comments on unemployment and deficit:
Previous: «
Next: »

Visited 2441 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , , , , ,