Bernanke Tells Committee That Economy's Turning

Washington, DC, Jan. 7, 2011 -- The U.S. economic recovery is finally takiing hold, Federal Reserve Chairman Ben Bernanke told the Senate Budget Committee Friday morning.

Bernanke said evidence is growing that consumer and business spending may be turning around.

"Overall the pace of economic recovery seems likely to be moderately stronger in 2011 than it was in 2010," he said.

However, he tempered his remarks by noting that unemployment is likely to remain close to 8% two years from now.

"Persistently high unemployment, by damping household income and confidence, could threaten the strength and sustainability of the recovery," he said.