U.S. growth back on, if just barely: Bernanke
Recovery will be modest and slow
The U.S. recession is probably over, the chairman of the Federal Reserve said Tuesday.
However, Ben Bernanke added, growth may not be strong enough to create many jobs.
"Even though from a technical perspective the recession is very likely over at this point, it's still going to feel like a very weak economy for some time," Bernanke said, responding to questions after a speech at the Brookings Institution in Washington.
The U.S. Commerce Department reported that the economy contracted by 1.0 per cent in the second quarter of this year. Since then, U.S. retail sales and prices for manufactured goods have increased, leading some economists to forecast modest growth in the second half of the year. The third-quarter gross domestic product numbers will provide the definitive answer when they come out Sept. 30.
Bernanke also said he expects Congress will pass measures to improve government oversight of the U.S. banking industry aimed at avoiding another financial meltdown.
"I feel quite confident that a comprehensive reform will be forthcoming," he said, describing the financial crisis over the past year as "too big a calamity" for Congress not to take action.
President Barack Obama on Monday urged Congress to enact reforms this year.
With files from The Associated Press