US Federal Reserve chief predicts slow revival

16/10/2008 14:14:21

The chairman of the US Federal Reserve says the American economy will eventually emerge from the financial crisis with "renewed vigour", but warns it will not happen quickly.

Our Washington correspondent, Kim Landers, reports in a speech in New York, the Federal Reserve chairman, Ben Bernanke, has warned it will take time for America's economic health to mend.

He says the recovery will be slow even if badly needed confidence in the US financial system returns and markets stabilise.

"The crisis will end when comprehensive responses by political and financial leaders restore that trust, bringing investors back into the market and allowing the normal business of extending credit to households and businesses to resume."

Ben Bernanke also predicts that the US economy will eventually emerge with what he calls renewed vigour.

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