'Full recovery' a ways off, says Bernanke

“Uncertainty remains unusually high” in U.S. markets as a result of the subprime- mortgage meltdown, Federal Reserve Chairman Ben Bernanke said last night. The market is in better shape than it was over the summer, partly due to the Fed’s September move to lower its funds rate, but housing remains a “significant drag” on economic growth, he told the New York Economic Club in a speech in New York. As a result, a “full recovery” is likely to take some time, Mr. Bernanke said. That doesn’t bode well for the market in the short-term, but its near- and long-term prospects looks good, he said. The banking system looks healthy, Mr. Bernanke said. And hedge funds have held up “reasonably well,” he added.