The European debt crisis is likely to have only a “modest” impact on the US economic recovery as long as Wall Street stabilizes, Federal Reserve Chairman Ben Bernanke told Congress on Wednesday. Bernanke, in prepared remarks to the House Budget Committee, struck a more confident tone that the recovery will remain intact despite problems in Europe as well stubbornly high unemployment and a fragile housing market here at home. “The economy ... appears to be on track to continue to expand through this year and next,” Bernanke said. However, the pace of the expansion - 3.5 percent this year by the Fed's estimate - won't be strong enough to quickly bring relief to the 15 million Americans who are unemployed. The unemployment rate now at 9.7 percent would likely see only a “slow reduction,” Bernanke warned. Fears have grown that the recovery could be derailed. For the first time since the beginning of the recession, economic growth – modest and fragile – has spread to every corner of the US. A survey released Wednesday found economic activity was improving across all 12 regions of the nation tracked by the Federal Reserve.
