Bernanke: Recession almost over but expect sizable job losses in coming months

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WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke told Congress Tuesday that the economy should pull out of a recession and start growing again later this year.

But in testimony to Congress' Joint Economic Committee, Bernanke warned that even after a recovery gets under way, economic activity is likely to be subpar. That means businesses will stay cautious about hiring, driving up the nation's unemployment rate and causing "further sizable job losses" in the coming months, he said.

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The unemployment rate "could remain high for a time, even after economic growth resumes," Bernanke said.

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The housing market, which has been in a slump for three years, has shown some signs of bottoming, he said. Consumer spending, which collapsed in the second half of last year, came back to life in the first quarter.

In the months ahead, consumer spending should be lifted by tax cuts contained in President Barack Obama's larger $787 billion stimulus package. Still, rising unemployment, sinking home values and cracked nest eggs will still weigh on consumers willingness to spend freely, Bernanke said.

In the latest sign the downturn could be easing, activity in the services sector contracted at a slower pace in April, the Institute for Supply Management reported Tuesday. Its service sector index came in at 43.7 in April, up from 40.8 in March. Any reading below 50 indicates the service sector, where most Americans work, is contracting.

Meanwhile, business investment remains "extremely weak," and conditions in the commercial real estate market are "poor," the Fed chief said.

http://www.breitbart.com/article.php?id=D9...;show_article=1

[I AM NOT THAT GUY 5,715]

That is why you never see a one-armed economist. He would never be able to say, "On the other hand..."

[Ban Hammer 14,569]

That is why you never see a one-armed economist. He would never be able to say, "On the other hand..."

probably also why you don't see too many economists that are lepers.