US economy cannot fly solo yet
Posted by Stephen Cline on March 27th, 2010The events of the last two years have left a lot of people shaken up badly, to the extent that they will perhaps find it very hard to have faith in the US economy and its ability to take on the challenges that lie ahead. Ben Bernanke seems to believe so too, as he thinks that the US economy will need a lot more time before it can fly solo and not be dependent on the US Fed Reserve. There has to be a lot of continued support as well as help from the Fed Reserve as the US economy tries to get back its act and get back on its feet all over again. This is not an easy task and is also likely to take a lot of time.
Ben Bernanke also said that the US labor market is very weak and it will take quite some time before it makes progress in creating jobs and coming below the around 9.7% rate of unemployment that still exists in the market and has been so for quite some time now. While the US Fed is not thinking of increasing interest rates right now and the reason is that unless the US economy is on a much stronger footing this is not really very feasible or practical at all.
Tags: fly solo, US economy