Federal Reserve chairman Ben Bernanke has once again allayed fears of a double-dip recession saying the US is staging a "moderate economic recovery".
Testifying before the US Congress, Bernanke cited improved spending by businesses and consumers as the reasons for his current optimism.
The testimony helped the S&P 500 cross the pivotal 1,200 point mark.
However, Bernanke warned US economy was still confronted with "significant restraints", including high unemployment and housing market weakness.
"It looks like we are on a path to moderate recovery and that the risk of a double-dip, while certainly not negligible, is certainly less than it was a few months ago," Bernanke said.
"That being said, there are any number of possible things that could derail it."
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