Bernanke Sees No Quick End in Sight for Joblessness Crisis

Created: June 08, 2010 10:25 | Last updated: July 31, 2020 00:00

Speaking with ABC News’ Sam Donaldson yesterday, Federal Reserve Chairman Ben Bernanke described the recovery as “moderate-paced” and demurred on the issue of whether there might be a double-dip, saying, “There seems to be a good bit of momentum in consumer spending and investment, so my best guess is that we’ll have a continued recovery.”

He also predicted that the unemployment rate will remain highly elevated. He said the Federal Reserve plans to raise interest rates before the economy hits full employment — echoing comments made by Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta — but did not say when that process would start. “The unemployment rate is still going to be high for a while, and that means that a lot of people are going to be under financial stress,” Bernanke said.