Bernanke says recovery has ways to go

CHARLESTON, S.C., Aug. 2 (UPI) -- Federal Reserve Chairman Ben Bernanke said Monday the U.S. economy still had "a considerable way to go," before the economic recovery is complete.

Speaking at the Annual Meeting of the Southern Legislative Conference, Bernanke said, "The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again."

"But we still have a considerable way to go to achieve a full recovery … and many Americans are still grappling with unemployment, foreclosure and lost savings," he said.

Economists are keeping close tabs on Bernanke's remarks, looking for a sign the central bank could change direction with its monetary policy. Bernanke's prepared remarks, however, kept clear of any major policy shift announcements.

Bernanke said the economy still faces cycles difficult to arrest, such as increased numbers of Americans signing up for Medicaid, just at a time tax revenues are down.

Tax revenues for the 15 states of the Southern Legislative Conference fell "roughly 10 percent in 2009," Bernanke said. At the same time, "In 2009, (Medicaid) caseloads were 11 percent above their 2007 level in the region represented by the SLC."