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Federal Reserve Chairman Ben Bernanke has voiced a warning over the recent drop in the unemployment rate, saying the economy needs to grow faster in order to keep the jobless rate from going back up:
“To the extent that the decline in the unemployment rate since last summer has brought employment back into line with the level of aggregate demand, then further significant improvement in unemployment will likely require faster economic growth than what we’ve experienced in the past year.”
He added that:
“The Federal Reserve’s accommodative monetary policies… should help over time to reduce longer-term unemployment, as well.”
His comments have some analysts suggesting that not only will the Fed continue to keep interest rates near zero, it may inject further stimulus into the economy, too.