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Bernanke warns US economy will need Govt stimulus

Monday, 20 October 2008

The head of America's Federal Reserve Ben Bernanke is warning that the US economy will remain shaky for months to come.

Mr Bernanke has told Congress that a fresh round of government economic stimulus is a good idea.

America's unemployment rate is currently at 6.1%, but some analysts are predicting that it could hit 7.5% or higher by next year.

Mr Bernanke said that any stimulus package should include provisions to help break through the stubborn credit clog that is playing a major role in the economy's slowdown.

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