Stocks jump as Bernanke sees rates remaining low
Stocks rebound from slide as Bernanke tells Congress interest rates are likely to remain low
NEW YORK (AP) -- Stocks rebounded from a two-day slide Wednesday as Federal Reserve Chairman Ben Bernanke told Congress that low interest rates are still needed to support the economy.
Bernanke sounded an upbeat note about a recovery as part of his regular semi-annual report to Congress on the economy. He told the House Financial Services Committee he still expects interest rates will remain low for an extended period. Investors want to see low-cost borrowing continue to help revive the economy.
The Dow Jones industrial average jumped 100 points, erasing a 101-point drop from Tuesday.
At the same time, a disappointing report on new home sales brought the latest reminder that a recovery in the economy will be difficult even with government aid.
