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| Version 5 | Version 6 |
|---|---|
| Obama suggests recession easing | Obama suggests recession easing |
| (40 minutes later) | |
| US President Barack Obama has said there are "signs of economic progress" but underlined that times remain tough. | US President Barack Obama has said there are "signs of economic progress" but underlined that times remain tough. |
| Separately Federal Reserve head Ben Bernanke talked of "tentative signs" that the contraction rate was calming. | Separately Federal Reserve head Ben Bernanke talked of "tentative signs" that the contraction rate was calming. |
| But both men, speaking independently to students, said recovery would take time and more job losses would follow. | But both men, speaking independently to students, said recovery would take time and more job losses would follow. |
| Their statements came after earlier data showed disappointing retail sales for March after two months of rises, a signal that consumers were cautious. | Their statements came after earlier data showed disappointing retail sales for March after two months of rises, a signal that consumers were cautious. |
| The fall in retail sales was unexpected, suggesting the worst might not yet be over. | The fall in retail sales was unexpected, suggesting the worst might not yet be over. |
| Mr Obama, who was speaking at Georgetown University, pointed to the US government's housing plan as a factor in boosting the economy, as the number of people refinancing their loans increased. | Mr Obama, who was speaking at Georgetown University, pointed to the US government's housing plan as a factor in boosting the economy, as the number of people refinancing their loans increased. |
| He added that support for the auto and student loan markets had also contributed to an easing of credit conditions along with progress at this month's G20 meeting. | He added that support for the auto and student loan markets had also contributed to an easing of credit conditions along with progress at this month's G20 meeting. |
| But he warned that more work needed to be done and that "credit was not flowing nearly as easily as it should". | But he warned that more work needed to be done and that "credit was not flowing nearly as easily as it should". |
| He also said 2009 would be a hard year for the US economy, when there would be more job losses, more repossessions and "more pain before it ends". | He also said 2009 would be a hard year for the US economy, when there would be more job losses, more repossessions and "more pain before it ends". |
| Financial markets | Financial markets |
| And Mr Bernanke, who was talking to students at Moorehouse University in Atlanta, said: "A levelling out of economic activity is the first step towards recovery". | And Mr Bernanke, who was talking to students at Moorehouse University in Atlanta, said: "A levelling out of economic activity is the first step towards recovery". |
| But he added: "We will not have a sustainable recovery without a stabilisation of our financial system and credit markets." | But he added: "We will not have a sustainable recovery without a stabilisation of our financial system and credit markets." |
| The central bank has reduced interest rates to near zero in a move to boost the economy and encourage spending. | The central bank has reduced interest rates to near zero in a move to boost the economy and encourage spending. |
| But problems in the credit markets have continued to make borrowing for individual and firms hard and expensive. | But problems in the credit markets have continued to make borrowing for individual and firms hard and expensive. |
| Mr Obama was greeted with applause when he said the first task was to ensure such a crisis did not happen again. | Mr Obama was greeted with applause when he said the first task was to ensure such a crisis did not happen again. |
| He said recent expansion, notably in the financial sector, was not sustainable. | |
| And he said it wasn't sustainable for long term prosperity to have a small number of individuals seeing higher pay while families saw their incomes drop. | |
| He added that the Federal Reserve would continue to take the "necessary steps to unclog the financial markets and strengthen the economy." |