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With economy slowing, Bernanke still not ready to act
The U.S. economy grew at a slower pace during the second quarter of this year than first estimated, the government reported Friday, another indication that the recovery is losing steam and one that prompted Federal Reserve Chairman Ben Bernanke to pledge new action if the economy deteriorates further.
Although the Commerce Department's first estimate of growth from April through June had been 2.4 percent, the agency revised that number Friday to 1.6 percent. That suggests that the slowdown from strong 3.7 percent growth in the first three months of this year was more pronounced than had been thought. The agency attributed the revision to stronger-than-anticipated growth in imports, which partially reduce domestic growth.
The Commerce Department's revision came hours before a much-anticipated speech by Bernanke on his outlook amid darkening views of the economy.
Speaking at the Fed's annual gathering in the Wyoming town of Jackson Hole, Bernanke restated in a detailed 20-page speech that the Fed's rate-setting Federal Open Market Committee still anticipates growth. He also indicated that he isn't ready to take new aggressive actions until there are clearer signs of economic deterioration.