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Fed's Bernanke on PBS - Jobless rate to stay high

Published 07/26/2009, 08:09 PM
Updated 07/26/2009, 08:16 PM

KANSAS CITY, MO., July 26 (Reuters) - The U.S. jobless rate is likely to stay high even once the nation exits recession some time in the next few months, Federal Reserve Chairman Ben Bernanke said on Sunday.

In a taping of the "Bernanke on the Record" special that will air on television station PBS this week, Bernanke said it takes GDP growth of about 2.5 percent to keep the jobless rate constant.

Bernanke said economic growth was likely to resume in the second half of this year, but it would not be robust enough to bring down the jobless rate.

The unemployment rate was 9.5 percent in June, latest government data show.

Speaking to an audience drawn from local citizens, Bernanke said the Fed is doing all it can to turn the economy around.

"The Federal Reserve has been putting the pedal to the metal," he said, adding that "recessions happen."

The U.S. central bank supports a strong dollar policy, Bernanke said, adding, "the best way to have a strong dollar is to have a strong economy." (Reporting by Ros Krasny and Mark Felsenthal; Editing by Andrea Ricci)

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