The U.S. economy will continue its slowdown during the first half of 2008, but should begin to revive thanks to a government stimulus package and changes to fiscal policy, Federal Reserve Chairman Ben Bernanke said during testimony this morning before the Joint Economic Committee on Capitol Hill.

"It now appears likely that real gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly," Bernanke said in testimony. "We expect economic activity to strengthen in the second half of the year, in part as the result of stimulative monetary and fiscal policies; and growth is expected to proceed at or a little above its sustainable pace in 2009, bolstered by a stabilization of housing activity, albeit at low levels, and gradually improving financial conditions."

Bernanke admitted that in light of recent market turbulence, however, his forecast is somewhat uncertain and there are still high risks that could continue plaguing the nation's economy.

— Carrie Sheffield, Web editor, The Washington Times