How we would know the stimulus package is working

Bernanke said that he needs to watch the following three areas:

1. Housing market - consistent numbers
2. Labor market
3. Credit market

as he answered a question, "how we would know the stimulus package is working."


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Federal Reserve chief Ben Bernanke Thursday said the outlook for growth was sluggish at best, even as the government reported record exports trimmed the U.S. trade deficit last year, suggesting the economy at the end of 2007 was not as weak as earlier thought.

http://www.cnbc.com/id/23167378

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WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke told Congress on Thursday the central bank will act as needed to help the struggling U.S. economy, but it has to be mindful that growth should pick up later in the year.

The Fed "will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks," Bernanke told the Senate Banking Committee.

He said the outlook for the economy had worsened in recent months and risks to growth had picked up.

However, the central bank chairman also said he expects sluggish growth to give way to a somewhat stronger expansion later this year and the likely effects of fiscal and monetary stimulus now put in place had to be considered in determining the appropriate level of interest rates.

http://news.yahoo.com/s/nm/20080214/bs_nm/usa_economy_bernanke_dc_5