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US economy will strengthen in second half of 2011: Bernanke

June 8, 2011 - Washington

US Federal Reserve Chairman Ben Bernanke has said that the country's economic recovery is likely to rebound in the coming months.

During a banking conference in Atlanta, he acknowledged that growth had been slower than expected this year but said momentum would build in the second half of the year, The BBC reports.

Bernanke did not suggest the central bank was planning any further monetary easing.

He pointed out that the weakening economic performance in the first several months was mainly due to the higher gas prices and the Japan crises, factors that should ease in coming months.

"Overall, the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is both uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers," said Bernanke.

Some investors had been hoping there would be a hint that the Federal Reserve might consider taking further steps to pump money into the economy.

Six-hundred billion dollars Treasury bond-buying program that was designed to help keep interest rates low and money flowing, is ending this month.

Bernanke said that the economy still needed the benefit of low interest rates.


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