U. S. economy is reviving gradually and things are looking up for the county is what Bernake chairman of the Federal Reserve had to say about the economical condition but he also warned that despite the growth, the economy has not yet reached the stage where it can wipe out the lingering joblessness and bring down the rate as quickly as the policy makers would want. At a Federal Deposit Insurance Corporation sponsored event Mr. Bernake said that a 3 to 4% kind of growth for the year of 2011 will be good enough for them following the growth trend of the ending months of 2010.

The November of 2010 saw the Fed initiate its 600 billion dollar bond purchasing program to enable more growth and to slash the growing unemployment rate, was subject to many controversies regarding its utility but putting an end to all controversies the economy has picked up since the launch of the program and all the economic indicators starting from trade figures to retail sales have all certifies that. Accordingly the assessments and the forecast made by Mr. Ben Bernake have been more optimistic since. In a speech addressed to the congress last week he said that all the parameters indicate that a recovery which is self sustaining in nature is taking hold. According to him quite a few improvements can be already seen in the labour market and that the risk of deflation has decelerated considerably indicating that they are on the right track.

A debate though looms over the future of the bond purchasing program. It has to be decided whether or not to continue the program to its planned conclusion midyear. A number of officials of the Fed are in favour of continuing it. But the problem is that long term int. rates have been on the rise while the program was intended to put a check on it. Thus questions are raised on its effectiveness.