US Federal Reserve Chairman Ben Bernanke on Wednesday predicted a mild recovery in the US economy this year, but with jobs still scarce he would not say when the central bank might start raising interest rates, according to dpa. Testifying before Congress as the Fed released a semi-annual economic report, Bernanke said the private sector was beginning to grow again after a nearly two-year recession considered the worst since the Great Depression of the 1930s. The Fed predicted economic growth of 3-3.5 per cent in 2010, but the jobless rate is likely to remain at about 9.5-9.7 per cent through the year. Private demand "does seem to be growing at a moderate pace," Bernanke told the Financial Services Committee of the House of Representatives, noting gains in consumer spending, business investment and trade. But "the job market remains quite weak," Bernanke said. The Fed has kept its benchmark federal funds rate at a record low of near 0 per cent since December 2008. Bernanke reiterated the central bank's line that rates would remain at this low "for an extended period."
