Rapid recent falls in US unemployment may prove to be a one-off unless economic growth picks up, Ben Bernanke, chairman of the US Federal Reserve warned yesterday.
The downbeat comments, underscoring the Fed’s support for easy monetary policy, may calm investors who had begun to doubt the central bank’s forecast of exceptionally low interest rates until “late 2014”.
The speech marked the first time that Mr Bernanke had given his analysis of the rapid fall in the unemployment rate from 9.1 to 8.3 per cent over the past six months. He said that it may reflect a one-off bounce back from big job cuts in 2008 and 2009.
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