Slow rebound baffles Bernanke

Even the Federal Reserve appears baffled by the economy’s unpredictability.

Chairman Ben Bernanke told lawmakers this week that the recovery remains “uneven and modest by historical standards.”

He reiterated his concern Thursday that chronic long-term unemployment threatens to reduce the nation’s supply of skilled workers.

In a second day of congressional testimony, Bernanke noted that the economic recovery has been slower than normal. But he said he doubts the recession permanently reduced the economy’s growth potential.

Bernanke said he did worry that more than 40 percent of America’s unemployed – 5.5 million people – have been out of work for more than six months. He said if the problem persists, more of the long-term unemployed will lose job skills and struggle to regain them.