Federal reserve Chairman Ben Bernanke addressed the Senate Banking Committee on Tuesday.
In his Speech, Bernanke said an economic turnaround will only occur "if actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability." He also acknowledged the recovery might not go as well as hoped.
Bernanke also told that "there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery."
"This outlook for economic activity is subject to considerable uncertainty, and I believe that, overall, the downside risks probably outweigh those on the upside," he said. He also acknowledged that hat no matter what the Fed and Treasury Department do to address the problems in the housing market, home prices and sales will not start to rebound until there's a broader recovery in the economy and job market.
