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Despite Increasing Consumer Investments, Recovery Won’t Feel Good Says Bernanke

Posted by: RateAPY Bank Rates News
June 15th, 2010

Modest Economic Growth

In a recent interview with Sam Donaldson, Federal Reserve Chairman Ben Bernanke said the U.S. is recovering from the Great Recession but that recovery won’t feel good. The economy is growing for the 4th straight quarter but only at a rate of about 3-3.5%.

Investments Not Strong Enough to Outpace Unemployment

Consumer investments and spending are strong enough for growth. The public sector has taken the baton. However, 3-3.5% growth barely keeps pace employing new people coming into the job market. In order to put the 8 million who have lost their jobs back to work, growth needs to be much higher. Bernanke believes the recovery won’t feel good, because it will take years to put people back to work. Meanwhile, many will be financially stressed.

For safe investments while the economy stabilizes, consider high interest checking accounts, savings accounts, money market accounts, and certificates of deposit.