Bernanke is very reluctant to make iron-clad forecasts after predicting years ago that the sub-prime crisis was “contained”. He summed up the outlook this way:
He listed a number of reasons why the economy looks as though it is in recovery mode like improved final demand, growth overseas which will boost exports, and consumer spending. Despite these signs of improvement, he says chances of a double-dip recession are not negligible because of headwinds from things like high unemployment and commercial real estate problems.
Net/net, with inflation low, looks like the Fed will keep rates low for the foreseeable future.
