Bernanke Says U.S. Consumer Spending to Accelerate |
| Bloomberg - Aug 2, 2010 |
Federal Reserve Chairman Ben S. Bernanke said rising wages will probably spur household spending in the next few quarters, even as “slow” job gains drag down consumer confidence.
“We have a considerable way to go to achieve a full recovery in our economy,” Bernanke said today in a speech to southern U.S. state lawmakers in Charleston, South Carolina. Still, “rising demand from households and businesses should help sustain growth,” and consumer spending, which accounts for about 70 percent of the economy, “seems likely to pick up in coming quarters from its recent modest pace.”
Fed policy makers are now starting to consider how to bolster the recovery and reduce unemployment after a year of developing tools to remove record monetary stimulus. A report July 30 showed that the U.S. economy, recovering from the worst recession since the 1930s, slowed to a 2.4 percent annual rate in the second quarter, less than forecast, as a scarcity of jobs eroded consumer spending.
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- Posted: 2010-08-02 09:47:01
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