The U.S. economy may be reaching the end of its decline, according to Federal Reserve Bank chairman Ben Bernanke in a prepared speech to be delivered today in Atlanta. Bernanke claims that the signs of recession are slowing while the U.S. takes its “first step” towards round recovery from the global economic slump.
“I am fundamentally optimistic about our economy,” read Bernanke’s prepared remarks for his speech today at Morehouse College. “Today’s economic conditions are difficult, but the foundations of our economy are strong, and we face no problems that cannot be overcome with insight, patience, and persistence.”
A Bloomberg survey of economists estimated that the pace of economic contraction in the U.S. has slowed in Q1 2009, down from the 6.3 percent deterioration experienced in the last three quarters of 2008. A set of retail sales figures released concurrently with Bernanke’s speech, however, showed a fall of 1.1 percent in March, compared to their encouraging 0.3 percent gain in February.
“Recently we have seen tentative signs that the sharp decline in economic activity may be slowing, for example, in data on home sales, homebuilding, and consumer spending, including sales of new motor vehicles,” Bernanke said. “A leveling out of economic activity is the first step toward recovery.”