Bernanke: Recession Could End in '09

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Federal Reserve chairman Ben Bernanke predicted, Sunday, that the recession could end this year if the government succeeds in strengthening the banking system.

On CBS's 60 Minutes, Bernanke said the key to restoring the economy rests on getting banks back to lending more freely-- a solution he pitched to Congress just last month.

He added that financial markets must also return to normal.

Click the player to watch the CBN News report followed by Pat Robertson's comments on what some are calling a sucker rally on Wall Street.

"We've seen some progress in the financial markets, absolutely," Bernanke said. "But until we get that stabilized and working normally, we're not going to see recovery."

Bernanke remained confident in the plan for the economy, but also warned that unemployment may take longer than a year to improve.

Some analyst predict the current jobless rate to be at about 10 percent.

Despite that bad news, the stock market has shown significant gains recently. The Dow has gone up about 9 percent in the last four days, marking some of the highest gains since last November.

Still, many analysts aren't convinced that the current rally will stick.

Stocks have had several short-term bear market rallies in the past few months and they fear the recent gains on Wall Street's could just be another.

Others see good signs, and hold that stocks may have hit at least a short-term bottom.

Bernanke's rare TV appearance was part of a weekend-long public relations strategy by the Administration to boost confidence in the economy.

Also on Sunday, White House economic adviser Christina Romer struck an optimistic tone on NBC's Meet the Press, saying the economy was strong despite the "mess" it was in.

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