Could The Recession End This Year?

Many economists have gone on record as saying that the current economic recession in the United States could last many more years. However, in an interview with 60 Minutes, Ben Bernanke said that it’s very possible that the recession could end before the final day of 2009. Bernanke, who is the chairman of the Federal Reserve, said the key is the federal government’s ability to adequately aid the struggling banking industry.

Ben Bernanke - Source: Flickr

The overall tone of the interview was positive and painted an optimistic picture, with the interview itself a rare opportunity to hear from a person in Bernanke’s position. He also said that the risk of a depression is remote at this point.

However, not everything was rosy. Bernanke said he expects the jobless rate to rise. He also hinted that the United States could face trouble if they do not act swiftly and appropriately in their helping of the banking system. If banks don’t start lending again, he warned, the economy won’t be able to rebound in a timely manner.

Although he admits that the federal government has made some mistakes along the way, he says that he won’t allow any major banks to go under on his watch. As a result of his statements, some stock market experts believe that Bernanke’s words will have a positive affect on the market in the coming weeks.

Source: Wire Reports