14 April 2009, 17:59  Bernanke: we have seen tentative signs that the sharp decline in economic activity may be slowing

Federal Reserve Chairman Ben Bernanke on Tuesday offered some hope that the 16-month-old recession may be losing some of its severity and he is "fundamentally optimistic" about the economy's longer term prospects. "Rntly we have seen tentative signs that the sharp decline in economic activity may be slowing," Mr. Bernanke said in remarks prepared for delivery later Tuesday in Atlanta. He specifically cited recent figures on housing, consumer spending, and new vehicle sales as some of those signs that the recession is slowing. "A leveling out of economic activity is the first step toward recovery," Mr. Bernanke said. "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, "he said. Mr. Bernanke signaled that officials are mindful of the need for an exit strategy once the economy improves. Fed officials, he said, "are fully committed to acting as needed to withdraw on a timely basis the extraordinary support now being provided to the economy and we are confident in our ability to do so." Mr. Bernanke expressed confidence in the Fed's ability to promote economic stability through a variety of efforts including credit programs and open market securities purchases, saying "the Fed's toolkit remains potent, even though the federal funds rate is close to zero and thus cannot be reduced further."

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