Upbeat Economy

Federal Reserve Chairman Ben Bernanke offered an upbeat assessment of the economy this week, citing improvements in the housing market, and suggesting the Fed will leave interest rates alone for a while.

As he delivered the Federal Reserve’s economic report to Congress on Wednesday, he said, “Overall, the U.S. economy seems likely to expand at a moderate pace this year and next.”  The Federal Reserve Bank and its Chairman are charged with maintaining the delicate balance of the U.S. economy - staving off inflation while encouraging consumerism.

Based on his testimony to the Senate, many economists believe that the Fed will continue to hold rates steady for much of this year.  Interest rates have steadied at 5.25 percent since August, giving borrowers a reprieve.