Federal Reserve Chairman Ben Bernanke warned Monday that it's too soon to know whether the economic recovery will last and again pledged to hold rates at record-low levels for an "extended period."
The Fed chief's speech to the Economic Club of Washington made clear he thinks the economy will struggle even as it recovers from the recession. He said the economy confronts "formidable headwinds" — including a weak job market, cautious consumers and tight credit.
Those forces "seem likely to keep the pace of expansion moderate," he said.
Asked about prospects for such a "double dip" recession, Bernanke said he could not guarantee it won't happen. He stuck with his forecast for a moderate recovery but said a "vigorous snapback" is less likely.
Bernanke said he expects "modest" economic growth next year. That should help push down the nation's unemployment rate — now at 10 percent — "but at a pace slower than we would like," he acknowledged.
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