Bernanke: Obama Stimulus Helps, More Action Needed

In time, the global economy will recover from the current crisis, "but the timing and strength of the recovery are highly uncertain," he added.

Ben S. Bernanke, Chariman of the Federal Reserve leaves 10 Downing Street in London after a meeting...

Ben S. Bernanke, Chariman of the Federal Reserve leaves 10 Downing Street in London after a meeting with the British Prime Minister Gordon Brown, Tuesday, Jan. 13, 2009. Federal Reserve Chairman Ben Bernanke says a stimulus package being crafted by President-elect Barack Obama and Congress could provide a "significant boost" to the sinking economy. (AP Photo/Alastair Grant)

(AP)

Bernanke, who earlier Tuesday met with British Prime Minister Gordon Brown and Bank of England Governor Mervyn King, said he expects to see "continued weakness" in the U.S. jobs market in the first quarter of this year. The unemployment rate bolted to a 16-year high of 7.2 percent in December. For all of last year, 2.6 million jobs disappeared, the most since World War II.

"We are certainly in a very bad stage of contraction as far as employment is concerned," he said.

However, he was hopeful of seeing some stabilization in the U.S. economy later in 2009, depending on factors like improvements in the credit market. "It isn't rapid growth, but a stabilization and a stop to the bleeding in some sense," he said.

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Aversa reported from Washington, D.C.

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