Bernanke Sees '08 Rebound

Los Angeles Times (04/03/08); Reynolds, Maura
The United States economy could possibly slip into recession, Federal Reserve Chairman Ben Bernanke conceded to the Joint Economic Committee of Congress on Wednesday; however, he predicted that economic recovery could begin by the end of 2008. Bernanke indicated that the central bank had done its job and likely would not continue its aggressive rate-cutting campaign. While acknowledging that the troubles in the residential property market are central to the broader economic slump, he also said that preventing future foreclosures and coming to the aid of overburdened mortgage borrowers was beyond the scope of the Fed's reach and that the onus now falls to Congress. "I think housing is very important, and we need to address it," Bernanke stated. "But of course that's Congress' sphere of influence, not the Fed's."