Bernanke Sees Recovery at Moderate Pace

Washington, DC, April 14, 2010--Business and consumer spending will help the economy continue to recover at a moderate pace in coming quarters, Federal Reserve Board Chairman Ben Bernanke said Wednesday.

In testimony before the Joint Economic Committee of Congress, Bernanke said private demand would be sufficient to replace the diminishing government stimulus and inventory adjustment that has spurred growth in the past six months.

"On balance, the incoming data suggest that growth in private final demand will be sufficient to promote a moderate economic recovery in coming quarters," Bernanke said.

Bernanke said that consumer spending could continue in coming months, aided by a gradual pickup in jobs and the recovery of household wealth from recent lows.

In his remarks, Bernanke made sure to stress that the economy still faces significant challenges. In particular, he noted that the housing market appears soft and that state and local governments are grappling with severe budget shortfalls.

In addition, banks are still not extending credit, he said, despite that financial conditions continue to strengthen.