When comments such as the following are attributed to the Chairman of the Federal Reserve, I think there is little hope for a quick turnaround in the US economy.
"The Fed chairman's economic outlook was generally gloomy. Business spending has slowed, consumer finances are improving unevenly, housing has remained depressed and job growth next year isn't likely to be strong enough to bring down unemployment very much, he said."
Hilsenrath, John, 2010. Bernanke makes case for further fed moves to boost the economy. The Wall Street Journal, Oct. 16.
These types of statements coming after severe recession and weak recovery could be interpreted as the Fed being concerned about a double dip recession. Hence open market operations to purchase government bonds will likely happen.
Perhaps the only thing preventing America from a second recession is growth in retail spending during the past three months.
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