Economy Weakened

Stocks drop as Bernanke warns of uncertain economy, By Stephen Bernard (AP), July 21, 2010, Denver Post: “Stocks fell sharply Wednesday after Federal Reserve Chairman Ben Bernanke confirmed investors’ fears that the economy has weakened. Interest rates dropped in the Treasury market as investors sought safer places for their money. Bernanke told a congressional committee that the economy is “unusually uncertain.” He said the economy is fragile, but he did not forecast that it would fall back into recession. The Dow Jones industrial average, which was modestly higher before Bernanke’s prepared remarks, fell more than 150 points as investors absorbed Bernanke’s assessment of the economy, and his statement that the Fed is ready to take action if the economy worsens. Bernanke’s comments, part of his semiannual report to Congress, weren’t surprising given the economic reports and corporate earnings numbers released in recent weeks. But they were enough to upset investors who have grown increasingly nervous about the state of the economic recovery. Some investors may have been hoping for a more upbeat reading from the Fed chairman. The Fed is still expecting the economy to expand this year, but the central bank has lowered its forecast for growth…”