Bernanke to Face Tough Questions in Congressional Testimony this Week

U.S. Federal Reserve Chairman Ben Bernanke is scheduled to testify in his semi-annual address before Congress on Wednesday, and will likely face difficult questions as the country continues to struggle. With unemployment above 9% and a slow recovery from the the financial meltdown of 2007-8, the Fed Chairman will undoubtedly face difficult questions from both sides of the aisle. Republicans and Democrats alike have endured heat from their constituents to improve the economic landscape before elections next year. Adding difficulty to the equation is ongoing European debt concerns, prolonged U.S. budget negotiations, and this Spring's natural disaster in Japan. According to a Reuters report, "Bernanke has argued that the biggest factors affecting growth in the first half of the year are temporary in nature: supply disruptions due to the Japanese earthquake, inclement weather and a surge in oil prices earlier this year." The Federal Reserve's FOMC has continued to vote to keep interest rates at a record low to stimulate the economy. Thus far, however, growth has been mediocre at best. Of particular interest to legislators will be jobs. The U.S. economy created 18,000 jobs in June, compared to the 90,000 economists had expected. Analysts expect Bernanke to point toward temporary setbacks and a second-half recovery. "The weak jobs report does not rule out a second half recovery by any means. Employment is something of a lagging indicator," Dean Maki, an economist at Barclays Capital told Reuters.