Is 2013 the New Estimate for Economic Recovery?
Online, August 1, 2010 (Newswire.com) - Federal Reserve Chairman Ben Bernanke recently gave the Senate Banking Committee his semi-annual monetary report, stating the recovery is continuing at a modest pace but with a weaker outlook. Bernanke then went on to say he expects the unemployment rate to remain well above 7 percent (the Fed considers full employment to be 5 to 5.3 percent) through the end of 2012.
Noted financial advisor Dennis Tubbergen agrees with Bernanke's assessment.
Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, in his economic outlook blog has stated that unemployment has not been getting substantially better and a recovery with high unemployment is unlikely.
"And unemployment numbers have a direct link to housing, explaining in part why the housing market remains depressed," explains Tubbergen. "Unfortunately, the millions of homeowners awaiting a housing market recovery may have to wait a bit longer. My forecast that the housing market bottom may occur in 2012 just may hold true."
According to the New York Times' July 21, 2010 article summing up Bernanke's report, the Fed expects the economy to grow this year by 3 to 3.5 percent, with 3.5 percent growth in 2011 and 4.5 percent in 2012.
Senators at the hearings asked Bernanke if the stimulus funds could continue to be beneficial, and Bernanke's response was that he feels continued modest stimulus for now seems to be in order.
"Politicians in both parties are simply making the inevitable landing harder by continuing to spend tomorrow's production today," concludes Tubbergen.
For more information on Dennis Tubbergen's views, visit www.dennistubbergen.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.