Bernanke: Unemployment to top 10 percent

NEW YORK, July 26 (UPI) -- Federal Reserve Chairman Ben Bernanke told an audience in Missouri Sunday unemployment will exceed 10 percent before receding in the second half of 2009.

In an appearance at a town hall in Kansas City, Mo., Bernanke said the economy is showing signs of improvement but he said recovery will not be rapid, CNN Money reported.

During the event -- "Bernanke on the Record" -- the Fed chairman took questions from audience members and from moderator Jim Lehrer, the host of "NewsHour"on PBS.

Bernanke said the recession, which he said is the worst since the Great Depression, could result in an economy that is stronger than it was before the downturn began.

"The silver lining in this whole thing is that people are starting to save more, since they saw what happened with 401(k) investments," he said.

Bernanke said the U.S. government is taking steps intended to prevent similar downturns.

"I don't think we'll ever completely eliminate financial crises, but there are ways to make sure one this severe never happens again," he said.

The unemployment rate in June was 9.5 percent, a 26-year high.