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Mr Bernanke may face opposition from Europe and from colleagues within the Fed
US Federal Reserve head Ben Bernanke is to deliver a key policy speech as the US economy faces a sharp slowdown.
He is expected to tell fellow central bankers at the Jackson Hole conference in Wyoming what options, if any, remain to turn the stalling recovery around.
However, further monetary stimulus could face opposition from Europe and from colleagues within the Fed.
The US government is likely to revise estimated second-quarter GDP down heavily just before the speech.
The new estimate is expected to be 1.4%, down from 2.4% previously.
A spate of poor housing and manufacturing data over the summer points to a major economic slowdown in the second half of the year.
Existing home sales fell 27% in July from a year earlier, as a special tax credit for home-buyers expired.
If the sales data translates into further falls in US house prices, this would lead to renewed losses for mortgage lenders and weigh further on consumer spending.
Moreover, regional manufacturing reports over the summer point to a sharp slowdown in industrial production, as a temporary spurt in orders from companies rebuilding their inventories comes to an end.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Mr Bernanke may face opposition from Europe and from colleagues within the Fed US Federal Reserve head Ben Bernanke is to deliver a key policy speech as the US economy faces a sharp slowdown.
He is expected to tell fellow central bankers at the Jackson Hole conference in Wyoming what options, if any, remain to turn the stalling recovery around.
However, further monetary stimulus could face opposition from Europe and from colleagues within the Fed.
The US government is likely to revise estimated second-quarter GDP down heavily just before the speech.
The new estimate is expected to be 1.4%, down from 2.4% previously.
A spate of poor housing and manufacturing data over the summer points to a major economic slowdown in the second half of the year.
Existing home sales fell 27% in July from a year earlier, as a special tax credit for home-buyers expired.
If the sales data translates into further falls in US house prices, this would lead to renewed losses for mortgage lenders and weigh further on consumer spending.
Moreover, regional manufacturing reports over the summer point to a sharp slowdown in industrial production, as a temporary spurt in orders from companies rebuilding their inventories comes to an end.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.