Although unemployment rates may remain high, Federal Reserve Chairman Ben Bernanke believes that the United States economy will begin to improve later on this year, assuming that financial sectors continue to 'heal'. Now more than ever, Bernanke appears to be fairly confident that our economy will soon reach its recovery. He predicts a "rebound in consumer spending, which is the driving force behind the economy". Bernanke also claims that we, "continue to expect economic activity to bottom out, then to turn up later this year". Even at the first sign of recovery, however, economic activity rates still won't be as high as they should be. This will keep inflation low for a while, resulting in lower interest rates as well. Bernanke announced that the Fed will soon be releasing further information about various lending programs in order to help release us from this credit crisis. Even though our current situation has become a serious issue and there are only a limited number of loans that banks can offer, Bernanke believes that things will only begin to get better from here.
-Hannah Rutzick
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