PHILADELPHIA-In his final speech as Federal Reserve Chairman Ben S. Bernanke said that the forces that contributed to the recession are abating, which should produce faster growth in the US economy in 2014.
“The combination of financial healing, greater balance in the housing market, less fiscal restraint, and, of course, continued monetary policy accommodation bodes well for U.S. economic growth in coming quarters,” Bernanke said in a speech before the American Economic Association in Philadelphia on Friday. “Of course, if the experience of the past few years teaches us anything, it is that we should be cautious in our forecasts.”
Bernanke reflected on his eight years as leader of the U.S. central bank. Policy makers last month reduced the Fed’s monthly bond buying to $75 billion from $85 billion, a first step in curtailing the stimulus engineered by Bernanke to prompt growth in the US economy, according to Bloomberg News.
“The economy has made considerable progress since the recovery officially began some four and a half years ago,” said Bernanke, whose term ends on Jan. 31. See story at Bloomberg News.