Its no secret. The U.S. economy has slowed since the Fall, with the housing market in decline, unemployment levels rising, and consumer spending dropping sharply.

But Federal Reserve Chairman, Ben Bernanke, reports that the pace of contraction may be slowing.

He says, "We expect that the recovery will only gradually gain momentum and that economic slack will diminish slowly. In particular, businesses are likely to be cautious about hiring, implying that the unemployment rate could remain high for a time, even after economic growth resumes."

In terms of housing, the Fed forecasts indicate the housing market is in fact stabilizing. The "sharp inventory liquidation" should slow throughout the year.

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Published: May 6, 2009

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