Bernanke Expects Growth to Rebound

Hard to argue with the logic. Unemployment is still very low, inflation isn't a huge concern, the financial markets are doing great (too good?), and growth is still positive, if a bit under trend levels. First quarter GDP growth was ~0.6%, which is a bit below the 3.0-3.5% trend rate, but not a whole lot. And some of that drop was because of companies selling off inventories rather than producing new goods. As companies look to re-stock, production should increase again.

Bernanke also made it sound like the FED won't lower the funds rate from 5.25%, which sent the financial markets down today. It was easy to see coming... inflation still hasn't been whittled down to the levels that the FED is comfortable with, possibly because of rising trade deficits. But, overall, the economy looks pretty sound, if just a touch sluggish.