At a time like this, statements of optimism have us holding our breath. In his remarks to a Boston Fed conference in Massachusetts, Fed Chairman Ben Bernanke said the economic outlook has improved from a month ago.
“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so,” Bernanke said.
What’s more, just one day after Bernanke’s insistence that economic risk has faded, the U.S. dollar the dollar rose to the biggest two-day gain versus the euro since 2005.
Bernanke’s comments come on the heels of Mesirow Financial’s annual mid-year economic review released June 9, which predicts for the second half of 2008 and the beginning of 2009 that the U.S. economy will “continue skirting a statistical recession, but that doesn’t mean times won’t be tough for a large cross section of the population and businesses.”