Bernanke Says Higher Rates May Signal Stronger Economy

Federal Reserve Chairman Ben S. Bernanke said recent increases in some interest rates may signal the economy is gaining vigor.

BernankeBloomberg.com
February 27, 2013

Feb. 27 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said recent increases in some interest rates may signal the economy is getting stronger. He spoke in Washington today in response to questions from members of the House Financial Services Committee. (This is an excerpt. Source: Bloomberg)

“The fact that interest rates have gone up a bit is actually indicative of a stronger economy,” Bernanke said in Washington today in response to questions from members of the House Financial Services Committee. That indicates the Fed’s stimulus is working, he said.

Bernanke also said the central bank’s easing policies are helping to improve demand for homes and cars, and that the housing market is recovering. He was continuing his semi-annual testimony to Congress after speaking yesterday in the Senate.

The world’s largest economy has shown signs that it will resume growth after gross domestic product unexpectedly shrank 0.1 percent in the fourth quarter. Reports today showed that orders for U.S. durable goods excluding transportation gear jumped in January by the most in a year and contracts to buy previously owned homes climbed more than forecast.