Ben Bernanke announced his next steps during the central banks governors meeting,hold in Jackson Hole (Wisconsin),just the day when the United States revised the GDP growth during the second quarter, than has been lower than the expected.

The GDP of the United States grew now by 1,6%, in front of the 2,4% considered in a beginning. However,the reduction was lower than the expected by analysts, that foreasted a GDP growth by 1,4% .

Ben Bernanke admitted that the recovery is “far to be complete” and the return to growth is “less vigorous than we expected “. According the Federal Reserve, this bad behavior is due to the weak real state market, affected by the fact that the household demand is growing with less strenght than the expected. Last week we could know that July household sales in The United States were reduced by 12,4% respect the month of June.

However, due to a lower recovery speed, the president of the Federal Reserve discarded a new entrance in the recession by the United States. “the conditions for the recovery of 2011 continue standing” and the Federal Reserve “has tools to give additional stimulus”.

The Federal reserve can not alone

However, Ben Bernanke asked for help from governments. “the steady growth will require effective and appropiate actions from the governments and the private industry. Central bankers , alone, can’t solve all economic problems of the world”, warned Ben Bernanke.

Ben Bernanke believes that there isn’t “deflation risk”, but says that the Federal Reserve can fight it.

In case of necessity of further stimulus, the Federal Reserve plans to implement a expansive monetary policy, mainly buying long therm public bonds. However, these operations must be analyzed well to compare expected profits with the potential risks and costs.

Ben Bernanke anticipated that the Federal Reserve can also lightly modify his communications about interest rates, pointing that money price will continue low not just by a long period “We can say that prices will we lower more time than what markets are discounting”, pointed.

Ben Bernanke discarded that the United States were going to register deflation (general fall in prices), possibility that concerns investors. Sun Won Sohn, professor of the California State University, said that we can’t doubt about the existence of unrest. Ben Bernanke doesn’t see it so fair. “there aren’t risks” but, if some evidence was produced,the Fed would fight it and offer a “strong resistance”.

For the analysts of Goldman Sachs, the words of Ben Bernanke allow to see the “measures”that could adopt the Federal Reserve, although his general tone has been to watch and stay for the evolution of the economy.

Para los analistas de Goldman Sachs, las palabras de Bernanke permiten ver las “directrices” que puede adoptar la Fed, pese a que su tono general haya sido el de “ver y esperar” a ver cómo evoluciona la economía.

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”I’ve seen some agreement in the forecasts of recovery from the community of analysts.But the general opinion of the most of us is that the economic growth in 2010 will be moderate”.added.

Bernanke also asked to put ”urgent” actions to overlook the ”structural” weaknesses is holding nowadays the financial system.

”We must urgently approach the structural weaknesses of the financial system, particularly in the regulatory frame, to ensure we do not suffer again the enormous costs of the lasts years
The president Obama has also the same opinion about the necessity of ”urgent” measures in the financial system to prevent a new crisis of the current to happen.”

In his speech in the Brookings Bernanke Institution has rated positively the intervention of financial regulators in September 08, after the Lehman Brothers bankrupt. According Bernanke, the fast performance of these organisms served to reach the stabilization of the global economy which was close to the collapse.

From this point of view,Bernanke has admitted that,nowadays, the fear to a landslide of the financial system is lower and the economic activity is stabilizing.

According Bernanke, after a ”drastical” contraction of the economy, the recession of the United Startes and the rest of the world has apparently touched the bottom and
the perspectives of a return to the economic growth seem good.
However, Bernanke warned that the financial conditions continue under ”high pressure”.
There is still stress in a lot of markets all over the world,financial institutions are affording significative additional loses and a lot of companies and homes continue experimenting a considerable difficulty to obtain credit” pointed Bernanke.
Geithner: ”we’re still recovering”
Coinciding With the Bernanke’s speech in Washington, The president of the treasure,Tim Geithner, assured in an interview from ABC that the current economic situation in the US is ”completely different” than a year ago. However,also pointed that there is still to early to affirm that the economy is recovering.

”I would not say that we are already recovering.We define recovery(…)as the moment when people comes back to work, when people is able to find job again,when business are investing on (..) and we haven’t still reached that point”

said Geithner.

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