US downturn risk 'diminished' - Fed chief

Speaking in Massachusetts overnight, Bernanke shrugged off Friday’s jobless rate jump which pounded Wall Street, saying overall economic indicators are more positive. “Despite the unwelcome rise in the unemployment rate that was reported last week, the recent incoming data, taken as a whole, have affected the outlook for economic activity and employment only modestly,” he says. “Indeed, although activity during the current quarter is likely to be weak, the risk that the economy has entered a substantial downturn appears to have diminished over the past month or so. “Over the remainder o...