Bernanke: Recession may end in ’09; Stocks climb
From the Associated Press
NEW YORK – Federal Reserve Chairman Ben Bernanke has reassured Wall Street by telling Congress the recession might end this year.
In his semiannual report to the Senate Banking Committee, Bernanke predicted the economy is likely to keep contracting in the first six months of 2009. But he also said “there is a reasonable prospect” the recession will end this year. He warned that a recovery will require getting credit and financial markets to operate normally.
While Bernanke’s assessment of the economy helped ease some pressure on the market, it also came after days of heavy selling that left the Dow Jones industrial average and the Standard & Poor’s 500 index near 12-year lows, so a bounce in stocks wasn’t a surprise. Stocks made cheaper by the selloff attracted bargain-hunting traders. Also, some, better-than-expected quarterly numbers from Home Depot Inc. helped cool some anxiety about the economy. source
Now here’s Reuters’ story on the same subject, same day.
Bernanke fears recession could extend to 2010
WASHINGTON (Reuters) – Federal Reserve Chairman Ben Bernanke warned on Tuesday the “severe” U.S. recession may drag into 2010 unless the government succeeds in stabilizing the banking system and financial markets with strong action.
Delivering a somber assessment to lawmakers, Bernanke said the fast-shrinking economy risked entering a mutually reinforcing cycle of weak growth and financial market strain.
“To break the adverse feedback loop, it is essential that we continue to complement fiscal stimulus with strong government action to stabilize financial institutions and financial markets,” he told the Senate Banking Committee. source
Nooooo, they don’t make the news, they only report it.