Barnanke Sees Meager Recovery, Meager Jobs Improvement in 2010
Posted on November 16, 2009Fed Chairman Ben Bernanke spoke about the economy and the recession yesterday. Bernanke does not think we will have a jobless recovery that is as bad as the one following the 2001 recession but he is concerned job growth could be meager in 2010.
We will be lucky if we have job growth in 2010. As of right now the economy continues to lose jobs. There has been recovery in the jobs market so to talk about a "meager jobs recovery" is premature as there has been no jobs recovery at all. Bernanke also said he does not see the economy slipping back into a recession but it will if there is not a jobs recovery. Consumers can't spend if they don't have an income.In response to a question from the audience, Bernanke said he doesn't see the same kind of jobless recovery in 2010 that the economy went through following the 2001 recession, in which job losses continued for nearly two years after growth returned. But he did say that he's worried job growth will be so meager next year that it won't make a dent in the unemployment rate.
Bernanke also said credit for small businesses and consumers is likely to remain strained. And he said that tighter credit will be a significant drag on the economy going forward.