Federal Reserve Chairman Ben Bernanke said on Monday that the Feds’ stimulation of the economy has indeed helped reduce the amount of unemployed in recent months, but warned that because of the size and duration of the problem there could result lasting damage to the US economy as a whole.
“Recent improvements are encouraging,” he said. But, he continued, “millions of families continue to suffer the day-to-day hardships associated with not being able to find suitable employment.”
“Because of its negative effects on workers’ skills and attachment to the labor force, long-term unemployment may ultimately reduce the productive capacity of our economy.”
Bernanke was addressing a group of business economists in Virginia on Monday.
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