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U.S. Federal Reserve Chairman Ben Bernanke has signaled the government's optimism in reviving economy although he did not dodge the fact that great difficulties lie ahead.
In a rare interview televised by CBS Monday, Bernanke said that concerted efforts by the U.S. government likely averted a depression similar to the 1930s.
"I think we've averted that risk," said Bernanke, the first sitting Federal Reserve chief to conduct a television interview in 20 years.
"I think we've gotten past that and now the problem is to get the thing working properly again."
"We'll see the recession coming to an end probably this year," predicted Bernanke, noting the recovery might begin next year, "and it will pick up steam over time."
His confidence was not wind invited by an empty hole. Latest government data showed that U.S. retail sales may be stabilized after a six-month retreat. Also banks from Citigroup Inc. and Bank of America Corp. to Barclay Plc announced last week that they were profitable for the first two months of 2009.
SHOWCASE OF GOVERNMENT'S OPTIMISM
As the U.S. economy, the world's No.1, has been hit severely by the financial crisis, market confidence has also been consequently seen an incredible retreat. Bad news from mortgage assets, the job market and the stock market have cooled down the consumption, which is fatal for the consumption-driven U.S. economy.
The message voiced by Bernanke came out as a showcase of the latest effort made by the Barack Obama-led U.S. administration to signal to the whole U.S. people that the country's economic prospect is optimistic rather than is doomed to meet the dead end.
Echoing Bernanke's appearance on the TV program, Christina Romer, who chairs the While House Council of Economic Advisers, also on Sunday appeared on NBC program "Meet the Press" and gave similar remarks.
Admitting that "in the short run we are in a bad situation," Romer said "of course the fundamentals are sound" in the U.S. economy as the U.S. workers are sound, capital stock is good and technology is good.
"It is an economic war. We haven't won yet. We have staged a wonderful battle," she said.
Romer and Bernanke's encouraging words, as analysts said, were designed to subside depression fears and create a favorable national psychological situation for the government's coming measures to boost consumption and the economy as a whole. |
