Bernanke Says Economy Nearing Start of Recovery

Jackson Hole, WY, Aug. 21, 2009--Federal Reserve Chairman Ben Bernanke said Friday that the U.S. economy is on the verge of recovery.

Economic activity in both the U.S. and around the world appears to be leveling out, and "the prospects for a return to growth soon appear good," Bernanke said in a speech at an annual Fed conference in Jackson Hole.

The assessment was consistent with the Fed's actions earlier this month as it began to curtail some emergency programs to revive the economy.

Still, Bernanke stressed Friday that despite much progress in stabilizing financial markets, consumers and businesses are still having trouble getting loans. The situation is not back to normal, he said.

Restoring the free flow of credit is a critical component to a lasting recovery.

"Although we have avoided the worst, difficult challenges still lie ahead," Bernanke told the gathering. "We must work together to build on the gains already made to secure a sustained economic recovery."