In an interview with 60 Minutes, Ben Bernanke said, “This (economic) decline will begin to moderate and we’ll begin to see a leveling off.” He also said that he expects a recovery beginning by the start of next year.
This isn’t the first time Bernanke has said that he believes the recession will begin to “level off” or end by the end of the year. He told Congress in January the same thing.
I think that Bernanke is going on the record with 60 Minutes now because he wants to reiterate to the public what he believes is going on with the economy and that we are on the right path. If he can get word out to investors, some stablility can come back to the markets or even the rally can continue through this week. When news like this comes out, it typically has an impact on the direction of the market.