This Dec. 18, 2013 file photo shows Federal Reserve Chairman Ben Bernanke listening to a question during a news conference at the Federal Reserve in Washington.WASHINGTON – Federal Reserve Chairman Ben Bernanke on Friday predicted a stronger year for the U.S. economy in 2014, saying several factors that have held back growth appear to be abating.
Americans’ finances have improved and the outlook for home sales is brighter, Bernanke said. He also expects less drag from federal spending cuts and tax increases.
The combination “bodes well for U.S. economic growth in coming quarters,” Bernanke said during a speech to the annual meeting of the American Economic Association in Philadelphia.
Bernanke made a similar assessment of the economy at a Dec. 18 news conference after the Fed’s last meeting. At the meeting, the Fed announced it would begin in January to reduce its monthly bond purchases from $85 billion to $75 billion, noting signs of an improving economy.
The bond purchases are intended to keep long-term interest rates low and encourage more borrowing and spending.