Bernanke warns of 'sizeable job losses' in coming months
Press Trust of India / Washington Jun 03, 2009, 21:26 IST
US Federal Reserve Chairman Ben S Bernanke today warned that there could be more job losses in the next few months.
The Fed Chief also said that tight credit conditions continue to restrain economic activity even as he expressed hope of the economy to turn up later in the year.
Reflecting the gloom in the labour market, Bernanke pointed out that recent data shows that "sizeable job losses and further increases in unemployment are likely over the next few months".
The statement came on the day when the ADP National Employment Report revealed that 5,32,000 jobs were slashed by private American companies in May, much more than widely expected.
The US economy has seen nearly 6 million job losses since the beginning of 2008.
"...Financial markets and financial institutions remain under stress, and low asset prices and tight credit conditions continue to restrain economic activity," the Fed Chief said in a testimony before the US House of Representatives.
However, he noted that the government anticipate overall economic activity to bottom out, and then to turn up later this year.
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