Bernanke says some economic problems may persist

Federal Reserve Chairman Ben Bernanke says some of the problems that are slowing the U.S. economy could persist into next year. Bernanke, who spoke at a news conference today, says the slowdown could be due, in part, to the depressed housing market and other factors that aren’t likely to fade soon. “Maybe some of the headwinds that are concerning us, like the weakness in the financial sector, problems in the housing sector—some may be stronger and more persistent than we thought,” he says. Bernanke described the debt crisis in Greece as a “very difficult situation.” He says if Greece defaulted on its debt, the impact would go beyond Europe and threaten the global economy. In answer to another question, Bernanke says the impact on financial institutions would likely be “very small.” But he says a spiraling Greek debt crisis that roiled financial markets would pose more severe threats. The Fed chairman made the comments at his second news conference of the year. Under a new Fed policy, he plans to take questions from reporters four times each year.