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In a 60 Minutes interview last night, Federal Reserve Chairman Ben Bernanke said he expects the recession to come to an end "probably this year." Bernanke said the banking and financial systems will need to stabilize first, but at the moment he is seeing "green shoots:"
I think all of our efforts, so far — have produced results. We're buying about $500 billion in — mortgages — in package and securities by — the G.S.E.s, Fannie Mae and Freddie Mac. And — that seems — to have brought down mortgage rates significantly. It allows people to refinance. To get out of high rate mortgages. we are seeing progress in — in the money market mutual funds, and in the business lending area.
And I think as those green shoots begin to appear in different markets — and as some confidence begins to come back — that will begin the positive dynamic that brings our economy back.
I do. I do see green shoots. And — not everywhere, but certainly in some of the markets that we've been — functioning in. And — we've seen some improvement in— in the banks, as well, certainly in some key cases.
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