News / USA

Bernanke: Reducing Unemployment Frustratingly Slow

Federal Reserve Board Chairman Ben Bernanke gives a semiannual report to the Senate Banking Committee, July 17, 2012, on Capitol Hill in Washington.Federal Reserve Board Chairman Ben Bernanke gives a semiannual report to the Senate Banking Committee, July 17, 2012, on Capitol Hill in Washington.
x
Federal Reserve Board Chairman Ben Bernanke gives a semiannual report to the Senate Banking Committee, July 17, 2012, on Capitol Hill in Washington.
Federal Reserve Board Chairman Ben Bernanke gives a semiannual report to the Senate Banking Committee, July 17, 2012, on Capitol Hill in Washington.
VOA News
U.S. Federal Reserve Chairman Ben Bernanke says the U.S. economic recovery has slowed and it will take a "frustratingly" long time to cut the unemployment rate.

The head of the U.S. central bank spoke at a congressional hearing Tuesday after reports showed inflation to be relatively mild, while job growth and retail sales were disappointing.

Bernanke said Europe's economy is under "significant stress" which is spilling over to the rest of the world, including the United States.

He said the U.S. economy could also be hurt if Congress and the president fail to reach agreements on tax and spending issues before the end of this year.  He again urged Congress to cut spending, but at a slow enough pace to avoid hurting growth while the U.S. economy is in a fragile state.

"The most effective way that the Congress could help to support the economy right now would be to work to address the nation's fiscal challenges in a way that takes into account both the need for long-run sustainability and the fragility of the recovery. Doing so earlier rather than later would help reduce uncertainty and boost household and business confidence," he said.

Related video by Mil Arcega
Forecasts for Global Growth Turn Pessimistici
|| 0:00:00
X
Mil Arcega
July 17, 2012 11:18 PM
The International Monetary Fund has lowered its global growth forecast, because of the continuing debt crisis in Europe and slowing growth in emerging markets. And U.S. Federal Reserve Chairman Ben Bernanke has given a downbeat view of the world's largest economy. As Mil Arcega reports, the latest assessment from both the U.S. and international community suggests growing economic pessimism around the world.
In the meantime, Bernanke said the Fed is ready to take further action to bolster growth if needed.

The Fed has already cut interest rates to nearly zero and used a complex process of bond purchases in another effort to stimulate the economy.

Senators also questioned Bernanke about a scandal over the way a critical global interest rate, called the LIBOR, was set.

Barclays bank recently paid a fine of around $450 million to the U.S. and British governments after the bank gave false information to the British official who sets the rate each day.  

It was an effort to make Barclays look stronger than it was during the financial crisis.

Bernanke said Fed officials in New York became aware of allegations during the financial crisis and reported the matter to British regulatory officials.

Some information for this report was provided by AP and AFP.

You May Like

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

This forum has been closed.
Comment Sorting
Comments
     
by: Vaméri from: US
July 18, 2012 1:52 PM
We are lucky if unemployment rate won't go higher. Do not expect good news on economy any time soon. Pres. Obama may have to leave the White House if our unemployment rate won't fall down below 8% by November.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid