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| Version 2 | Version 3 |
|---|---|
| US recession 'may last into 2010' | US recession 'may last into 2010' |
| (10 minutes later) | |
| US Federal Reserve chief Ben Bernanke has warned Congress that without the right policies from the government, the US recession could last into 2010. | US Federal Reserve chief Ben Bernanke has warned Congress that without the right policies from the government, the US recession could last into 2010. |
| But he said if the Obama administration and the central bank restore some measure of financial stability, 2010 could be a year of recovery. | But he said if the Obama administration and the central bank restore some measure of financial stability, 2010 could be a year of recovery. |
| Mr Bernanke made the comments to the Senate Banking Committee. | Mr Bernanke made the comments to the Senate Banking Committee. |
| He also warned that the global nature of the downturn was a threat because exports would be hit. | He also warned that the global nature of the downturn was a threat because exports would be hit. |
| In its attempts to revive the economy, the Federal Reserve has cut its key interest rate to nearly zero, while the Obama administration has recently signed a $787bn (£546bn) economic stimulus package. | In its attempts to revive the economy, the Federal Reserve has cut its key interest rate to nearly zero, while the Obama administration has recently signed a $787bn (£546bn) economic stimulus package. |
| Mr Bernanke reassured legislators that he was, "committed to using all available tools to stimulate economic activity and to improve financial market functioning". | Mr Bernanke reassured legislators that he was, "committed to using all available tools to stimulate economic activity and to improve financial market functioning". |
| But he also outlined long-run predictions for the economy, which he said reflected, "the view of policymakers that a full recovery of the economy from the current recession is likely to take more than two or three years". | But he also outlined long-run predictions for the economy, which he said reflected, "the view of policymakers that a full recovery of the economy from the current recession is likely to take more than two or three years". |
| Sliding confidence | Sliding confidence |
| Mr Bernanke's testimony came shortly after data showed that consumer confidence in February had fallen to the lowest level since the Conference Board began reporting the figures in 1967. | Mr Bernanke's testimony came shortly after data showed that consumer confidence in February had fallen to the lowest level since the Conference Board began reporting the figures in 1967. |
| Its sentiment index fell to a much worse-than-expected 25.0 in February from January's figure of 37.4. | Its sentiment index fell to a much worse-than-expected 25.0 in February from January's figure of 37.4. |
| "We just got the worst consumer confidence number ever on record," said Matt Esteve, a foreign exchange trader at Tempus Consulting in Washington. | "We just got the worst consumer confidence number ever on record," said Matt Esteve, a foreign exchange trader at Tempus Consulting in Washington. |
| "Following yesterday's awful sell-off in the stock market, it just highlights the risk that there is right now." | "Following yesterday's awful sell-off in the stock market, it just highlights the risk that there is right now." |
| House prices | |
| There were also figures showing that the decline in US house prices had accelerated. | |
| The S&P Case Shiller house price index showed the price of a single-family home had fallen 18.5% in December, compared with the same month of 2007. | |
| It was the biggest drop since the index began being calculated 21 years ago. | |
| "There are very few, if any, pockets of turnaround that one can see in the data," said David Blitzer, chairman of S&P's index committee. | |
| "Most of the nation appears to remain on a downward path." |