Bernanke: Recession could have been worse

In remarks delivered as he accepted an award from the Center for the Study of Presidency and Congress, Bernanke -- recognized as a leading expert on the Great Depression -- said economic policymakers around the world successfully avoided repeating mistakes of the Depression era, The Washington Post reported.

He said policymakers' responses to crises in the 1930s "ran the gamut from passivity to timidity," unlike the aggressive steps taken during 2008.

"In the current episode, in contrast to the 1930s, policymakers around the world worked assiduously to stabilize the financial system," Bernanke said. "As a result, although the economic consequences of the financial crisis have been painfully severe, the world was spared an even worse cataclysm that could have rivaled or surpassed the Great Depression."

Also Thursday, Fed Vice Chairman Donald Kohn told an audience in San Francisco a moderate economic recovery is under way, the Post reported.

"The economy appears to be moving in the right direction, though not as quickly as we all would like," Kohn said.

He said economic conditions have developed much as he and others have expected since last fall, suggesting "the future may, just may, be a bit less uncertain than before."

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