logo

Bernanke Encouraged by Drop in Unemployment, Cautions Full Recovery Will Take Years

Home » architecture » Bernanke Encouraged by Drop in Unemployment, Cautions Full Recovery Will Take Years

Bernanke Encouraged by Drop in Unemployment, Cautions Full Recovery Will Take Years

| architecture, architecture jobs, Hiring trends, jobs, unemployed architects | February 09, 2011

Fed Chair Ben Bernake

WASHINGTON — Federal Reserve Chairman Ben Bernanke told Congress on Wednesday that the sharp drop in unemployment over the last two months is encouraging but cautioned that it will take several years for hiring to return to normal. 

In prepared testimony before the House Budget Committee, Bernanke also warned that failing to forge a plan to reduce the government’s $1 trillion-plus deficits over the long term could eventually hurt the economy. 

The unemployment rate was 9 percent in January after the fastest two-month decline in 53 years. 

Those declines “provide some grounds for optimism on the employment front,” Bernanke said.

Bernanke is making his first appearance before the House since Republicans took control last month. He is expected to face tough questions from them, despite being a member of the party. 

The Fed chief said the economy is strengthening, helped by more spending by consumers and businesses. However, the economic recovery won’t be assured until companies step up hiring on a consistent basis. 

Bernanke’s remarks suggest the Fed will stick with its plan to buy $600 billion worth of Treasury debt by the end of June. The program is aimed to invigorate spending and the economy by lowering rates on loans and by boosting prices on stocks. 

Despite rising prices for gasoline and for many industrial and agricultural commodities, Bernanke said inflation remains “quite low.” He blamed the higher prices on strong demand from fast-growing countries such as China — not the Fed’s stimulus policies. 

The committee’s chairman, Rep. Paul Ryan, R-Wis., worries that the Fed’s stimulus policies, including debt purchases, could trigger inflation or fuel speculative buying of stocks or other assets. 

“Many of us fear monetary policy is on a difficult track,” Ryan said. 

However, Ryan expressed more concerns about the nation’s exploding government deficits. If left unchecked, it will eventually hurt the economy. Ryan favors budget cuts to get the deficits under control.

Hat Tip to Associated Press

About the author

Drawing upon original ideas and extensive personal and professional experience in the field, David McFadden crafted this article to explore the latest trends in the fields of architecture and building design. After working at various design practices—both full-time and freelance—and launching his design firm, David identified a significant gap in the industry. In 1984, he founded Consulting For Architects Inc. Careers, an expansive hub designed to align architects with hiring firms for mutual benefit. This platform enables architects to find impactful design work and frees hiring firms from the time-consuming cycles of recruitment and layoffs. David’s innovative approach to employer-employee relations has brought much-needed flexibility and adaptation to the industry. As the Founder and CEO, David has successfully guided his clients and staff through the challenges of four recessions—the early ’80s, early ’90s, early 2000s, the Great Recession, the pandemic, and the current slowdown due to inflation and high-interest rates.

One Response to "Bernanke Encouraged by Drop in Unemployment, Cautions Full Recovery Will Take Years"
New Jobs