–Economy’s Prospects In Long-Term ‘Are Very Good’
WASHINGTON (MNI) – While the prospects for the U.S. economy in the
long-term are “very good,” some “important challenges” must still be
overcome in the near term, Federal Reserve Chairman Ben Bernanke said
Tuesday.
In a rare and unexpected interview on CNBC ahead of his lecture to
students at George Washington University, Bernanke also said the Fed
will look at all the data in deciding the appropriate path for monetary
policy.
“The economy is still very challenging,” Bernanke said, noting the
still very high unemployment rate is having a broad impact on the entire
country.
“That’s honest answer,” he said.
The economy’s prospects in the long-term, however, “are very good
and ultimately things will normalize,” the Fed chairman added.
“But in the short-run we are still dealing with some important
challenges,” Bernanke cautioned.
Asked to comment on the recent rise in interest rates, and the
growing belief that the Fed will not remain on hold until late-2014, all
Bernanke would say is that the central bank would continue to analyze
all the financial data it receives.
He said the Federal Open Market Committee will examine all
developments, reiterating: “We’ve seen some improvement but we’ve still
got a long way to go.”
Bernanke said the lecture will be a good educational opportunity,
allowing him to talk to students about the context of the 2008 financial
crisis and the actions taken by the Fed in response.
** MNI Washington Bureau: 202-371-2121 **
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