Bernanke: Too early to declare lasting recovery

WASHINGTON (AP) _ Federal Reserve Chairman Ben Bernanke warned Monday that it's too soon to know whether the economic recovery will last and again pledged to hold rates at record-low levels for an "extended period."

The Fed chief's speech to the Economic Club of Washington made clear he thinks the economy will struggle even as it recovers from the recession. He said the economy confronts "formidable headwinds" _ including a weak job market, cautious consumers and tight credit.

The central bank has leeway to keep rates low because inflation is under control and is expected to stay tame because of the economy's weakness. Some private forecasters even fear that the recovery could fizzle late next year as the government stimulus fades.

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Early stock gains from Bernanke comments evaporate

NEW YORK (AP) _ Even the prospect of interest rates staying low couldn't keep buyers in the stock market.

Stocks ended little changed Monday, having given back a brief afternoon gain that followed comments from Federal Reserve Chairman Ben Bernanke.

Bernanke's remarks sent the dollar down because low rates make a currency less attractive, and that gave stocks a boost since a lower dollar can add to profits for U.S. companies that do business overseas. The market's gains evaporated later, however, as the dollar pared its losses.

Many traders have closed their books on the year and are wondering whether incremental improvements in the economy will be able to support more stock market gains next year.

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Consumer borrowing falls for 9th straight month

WASHINGTON (AP) _ Americans borrowed less for a record ninth straight month in October, another sign that consumer spending will remain weak, making it harder for the economy to mount a sustained rebound.

Consumer credit fell at an annual rate of $3.51 billion in October, the Federal Reserve said Monday. Economists expected a $9.3 billion decline.

Demand for revolving credit, the category that includes credit cards, fell 9.3 percent, while borrowing in the category that includes auto loans rose at an annual rate of 2.6 percent.

Americans are borrowing less as they try to replenish depleted investments. Many are finding it hard to get credit as banks, hit by the worst financial crisis since the 1930s, have tightened lending standards.

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Historic EPA finding: Greenhouse gases harm humans