Bernanke predicts slow drop in US unemployment

[FarCenter]

AFP - Federal Reserve Chairman Ben Bernanke admitted Tuesday that US economic data had been "disappointing" and that a future reduction in unemployment would likely prove "frustratingly slow."

Dealing a blow to Barack Obama and others hopeful for an improvement in economic news ahead of November's presidential elections, Bernanke offered a gloomy assessment of the outlook for the world's top economy.

In prepared testimony to Congress, the Fed chair forecast slower growth for this year and next, and a future replete with pitfalls both domestic and from Europe.

"Given that growth is projected to be not much above the rate needed to absorb new entrants into the labor force, the reduction in the unemployment rate seems likely to be frustratingly slow," he said in his semi-annual testimony.

http://www.france24.com/en/20120717-bernanke-predicts-slow-drop-us-unemployment

[lpbk2713]

1. It wouldn't have to be so slow if rethuglicans weren't dedicated to obstructionism.

They don't care what harm they may do to the country as long as they do what
they can to achieve their stated goal of making Obama a one term President.

[FarCenter]

2. Almost all major economies are slowing synchronously

They are all coupled now, so the Eurozone crisis, the financial mess in the UK, the slowdown in China, and the continuing malaise in Japan are all weighing on the economy.

The Fed and the US government are out of silver bullets.