U.s. Federal Reserve Chairman Ben Bernanke addresses a first-ever regularly scheduled press conference by a Fed chief following a meeting of the Fed at the Federal Reserve in Washington, April 27, 2011.
Credit: Reuters/Jason ReedBy Mark FelsenthalWASHINGTON | Fri 29 april 2011, 1: 30 pm EDT
WASHINGTON (Reuters)-the u.s. economy has not fully recovered from his deep recession, with housing still weighing on growth, Federal Reserve Chairman Ben Bernanke said on Friday in a speech spelling out ways that the u.s. Central Bank lower income communities has studied.
"Our economy is far from where we would like it to be," he said in prepared remarks to a Conference.
The Fed said earlier this week that it will see its $ 600 billion buy band program, launched in November to encourage a weak recovery, by means of a planned closure at the end of June.
World's largest economy grew a sluggish 1.8% annual growth in the first three months of the year, but unemployment is still at a lofty 8.8 percent.
The depressed housing market keeps back the economic recovery, Bernanke said. Home foreclosure rates remain high and many families feel more for their homes on the grounds than the houses are worth.
"Of course, the problems in the labour market and housing market are not nothing," he said.
The Fed Chairman said Fed research shows loans to individuals and companies through community development financial institutions can boost economic activity. That company revenues which in turn allows public spending in a way that these communities benefit generates, he said.
"We at the Federal Reserve will continue to be closely aligned to the economic health of all communities, including low-and moderate-income communities," Bernanke said.
With rising prices fueling concern about inflation, the Fed is under some pressure to tighten policy after unprecedented and aggressive easing measures. Various Fed officials believe the central bank must act quickly to pare its bloated balance sheet and other major central banks around the world have started with interest rates in response to the increasing pressure on prices.
However, the Fed clearly by means of a Declaration and a press conference by Bernanke on Wednesday that with a high percentage of unemployed, extensive lost wealth and inflation still not much higher level than historic lows, the central bank has no immediate plans to withdraw support.
Bernanke said on Friday the economy is recovering at a moderate pace, and that there is "welcome, if gradual" improvement of the labour markets.
(Editing by Neil Stempleman)
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