U.S. Federal Reserve (Fed) Chairman Ben Bernanke said Monday that it is too soon to know whether the economic recovery will be sustainable, and he again pledged to hold interest rates at historic lows near zero percent for an “extended period.” “Though we have begun to see some improvement in economic activity, we still have some way to go before we can be assured that the recovery will be self-sustaining,” Bernanke said in a speech to the Economic Club of Washington. The central bank chief's speech made clear he believes the economy will struggle even as it recovers from the recession. He said the economy confronts “formidable headwinds,” including a weak job market, cautious consumers, and tight credit conditions. “Household spending is unlikely to grow rapidly when people remain worried about job security and have limited access to credit,” the Fed chairman said. Such conditions “seem likely to keep the pace of expansion moderate.”
