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Bernanke Fears Slow Us Recovery

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The US economy is showing signs of a "self-sustaining recovery", but is not growing fast enough to reduce high jobless levels, Federal Reserve chairman Ben Bernanke has said.

Jobless Recovery

Mr Bernanke told the Senate Budget Committee it could take four to five years for the job market to normalise.

As well as unemployment, he said low inflation was also a concern.

"Very low inflation increases the risk that new adverse shocks could push the economy into deflation," he said.

Mr Bernanke was speaking shortly after the release of Labor Department figures showing that the US unemployment rate dropped to 9.4% in December from 9.8% in November, the biggest one-month drop since April 1998.

His comments and the more positive jobs data initially caused share prices to rise.

However, the lower rate came not only because more people found jobs, but also because 260,000 had given up looking and had therefore disappeared from the jobless total.

In later trading on Wall Street shares fell below their opening level.

'Modest' job growth

Phew :-

And here's me worrying that inflation was going to go into outer-space, and that it would take 10 years for normalisation.

Thank goodness we have experts in power.

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And here's me worrying that inflation was going to go into outer-space, and that it would take 10 years for normalisation.

Thank goodness we have experts in power.

US retail figures were poor for December too.

Quote

Retailers' plans to kick shoppers off the couch and into the mall earlier than ever this holiday season worked a little too well.

After responding with vigor to stores' endless blockbuster promotions in November, consumers found themselves tuckered out by December. That left many retailers on Thursday reporting December sales that were weaker than expected.

- Washington Post

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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