US economic recovery not worried about bank financing

Federal Reserve Chairman Ben Bernanke said 5th the U.S. economy should be able to resume growth later this year, although it could grow at a slower pace over time.　　As for the results of the bank's stress tests, he says many of the pressure-test banks will be able to meet capital requirements without the need for more public capital injections. Mr Bernanke, who testified on the day of the United States Congress's Joint Economic Committee, said the U.S. economy could start to grow again later this year, but even after the recovery, economic activity is likely to be relatively weak. He pointed out that business investment is still weak, companies will be cautious to increase employees, leading to continued decline in employment, unemployment continues to rise. 　　He predicts that America's unemployment rate will remain high for some time to come. Bernanke said recent figures suggest the pace of the US recession may be slowing. The housing market has shown signs of bottoming, and personal spending has rebounded in the first quarter of this year. 　　He estimates that the implementation of the tax cuts in the government's economic stimulus plan should have a catalytic effect on personal consumption spending in the coming months; industrial production will accelerate later this year to replenish inventories that have already been slashed, and other countries ' economies have already seen signs of slowing down, which will help U.S. exports expand. Even so, Mr Bernanke warns that consumer spending will still be constrained by factors such as rising unemployment, shrinking housing values and declining pensions. At the same time, corporate investment will remain "extremely weak", the commercial real estate market remains weak. 　　On the financial markets, Bernanke said there are some signs of improvement, but the market is still under considerable pressure. 　　For the bank stress tests, which are due to be released in Thursday, Mr Bernanke argues that many U.S. banks that need more money to get out of trouble will be able to meet their capital needs through the market without further government bailouts.　　Mr Bernanke said he believed many banks could raise money by offering or converting preferred shares or selling assets and other means. For delaying the release of the stress test results, Mr Bernanke said it was a very comprehensive test, of an unprecedented scale and scope. Several federal regulators have worked closely to overhaul the entire portfolio, reserves, operations and profitability of the 19 major U.S. banks. "Upon completion of the preliminary data, we will inform the Bank of the data and give them an opportunity to point out misunderstandings and communication problems." "Bernanke said the data on the results of the stress tests accurately reflected a relatively satisfactory bank situation and that banks had suffered considerable losses but had also made major write-downs."　　He is confident that many pressure-test banks will be able to meet capital requirements without the need for more public capital injections. Bernanke's upbeat expectations of "emboldened" the Federal Reserve chairman Ben Bernanke said in a congressional inquiry May 5 that the U.S. economy is expected to end the recession later this year and resume growth. This is the past 1.5 years since the US economy plunged into recession in December 2007, BernankeThe most optimistic forecasts of the U.S. economic outlook.　　In the context of the ongoing international financial crisis and the downturn in the world economy, Mr Bernanke has made optimistic predictions about the outlook for the U.S. economy. The U.S. economy will end the recession later this year. The important goal is to, in the recent slowdown in the U.S. economy, the positive factors have increased, through the public outcry to further enhance the confidence of investors and consumers, for the U.S. economy to come out of recession, to achieve recovery, contribute to a "public opinion power　　”。 To sum up, Bernanke's "emboldened" mainly in the following areas: The first quarter of this year, the U.S. financial situation in the United States significantly improved; second, the U.S. real economy is still falling, but a series of positive factors show that its decline is slowing　　Third, the world's other economies, especially China and other major emerging economies are likely to lead a rebound in the bottom of the United States, the early end of the recession provides favorable external conditions. From the financial perspective, the current international financial crisis has hit the U.S. financial sector, leading US banking institutions, insurers and hedge funds have been hit, even as Lehman Brothers sought bankruptcy protection. But in the first quarter of this year, some financial institutions, including Citigroup, JPMorgan Chase, Wells Fargo and Goldman Sachs, have been making huge profits. Industry insiders have said that the global financial sector has seen a fragile recovery momentum.　　A gradual recovery in the US financial sector will improve the conditions for investors and consumers to obtain loans, thereby providing more capital for economic activity and ultimately helping the US real economy recover gradually.　　From the U.S. real economy, whether it is the source of the current international financial crisis in the United States housing market, or accounting for about two-thirds of the total U.S. economy of personal consumption expenditure, there have been some positive signs recently. From the external economic environment, although the eurozone and Japan are still in a severe recession, some of the major developing economies have some obvious bright spots. At the 42nd annual meeting of the Board of Governors of the Asian Development Bank, held in Bali, Indonesia, in early May, ADB president Kuroda said that while the Asian economy is at its most difficult period since the Asian financial crisis of the late 90, he believes the Asian economy will recover quickly. And, in particular, he notes that China's economy may have bottomed out and begun to recover. In addition, ADB economists said that if Asian countries expand domestic demand and work together to promote cross-border trade and investment in the region, Asia is expected to achieve economic recovery ahead of the rest of the world.　　The improvement of the external economic environment has undoubtedly strengthened Bernanke's confidence in the early recovery of the U.S. economy. But as Mr Bernanke has said, the US banking system must stabilise further if the U.S. economy is to end its recession later this year. He stressed that a repeat of the financial situation would put downward pressure on the US economy as a whole, delaying the coming economic recovery. Indeed, as early as the first quarter of 2008, the heads of some of the leading financial institutions in the US and Europe once proclaimedSaid the worst of the US subprime crisis was over, but as the US "two houses" were in trouble in the summer, and then Lehman Brothers filed for bankruptcy protection and AIG was on the verge of bankruptcy, the US subprime crisis was not ending but intensified, eventually escalating into an international financial crisis sweeping the world. For the current U.S. and even the world economy, the majority of investors are slowly starting to optimistic expectations remain cautious, Mr Bernanke optimistic forecasts have their own "emboldened", but for investors, caution also has a cautious reason.