Bernanke emphasizing further interventions by Milota Sidorova

U.S. economy slid in 2Q and didn't meet the projection of 2.4 per cent growth. The official number moves along 1.6 per cent and indicates several crucial situations. Some of them were commented by U.S. Federal Reserve Chairman Ben Bernanke on an annual conference of global central bankers held in Jackson Hole, Wyoming on Friday. Re-elected Bernanke said economy recovery was much weaker and slower than expected and suggested that central bank would have to take another steps to boost markets. Although Fed kept its interest rates on ultra-low levels and totalled up to $1.7 trillion free for loans since December 2008, it was necessary to take into consideration more actions. ! But Bernanke didn't specify any more details. He spoke about unemployment, house markets and consumer spendings as key factors influencing economy stagnation from a wider perspective. According official data unemployment rate would decrease only with slight pace, falling below 9.4 percent only next year. The demand in real-estate market was still on a low level, but Bernanke kept some hope if prices and mortgages would fall and made them affordable to more people. But on the other hand, U.S. public was more reluctant to spend more past three months. However, this has been long-time period trend if exluded some exceptions like holidays or feasts. According several observers, although Bernanke emphasized further interventions, the committee didn't agree on details or even a common opinion whether to take more action in this case. U.S. stocks followed Bernanke's comments and dropped for some time, but recovered about 1 per cent. U.S. Treasury bond prices went down along with t! he dollar.

related story (sgx18104): http://www.france24.com/en/20100827-fed-intervene-economic-r...

by Milota Sidorova for Cantell TV (http://cantell.tv)

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