Bernanke's View of the US Economy

Fed Chairman Ben Bernanke gave no surprises on monetary policy, indicating that the economy is still below potential and accommodative policy is still needed. However, he sees the economy as temporarily softened by the tsunami and earthquake in Japan. Bernanke anticipates hiring to pick up from the pace in May. The Fed chief sees stronger job growth as critical for making sure the recovery is fully established. However, he is concerned that more than half of the jobless have been unemployed six months or more. He sees no sign so far that inflation is broad-based or ingrained. Bernanke sees the business sector as more upbeat with business credit conditions mostly improved and profits up. He sees housing as still weak with mortgage credit still constrained and declined prices an impediment to sales and construction. Bernanke calls for the federal government to create a credible plan for long-term for fiscal consolidation.