The US economy is "back from the brink" but "strong headwinds still remain", the chair of the Federal Reserve has suggested.

Ben Bernanke has explained that a weak labor market and constrained bank lending is likely to prevent the North American country's economic rebound from being as strong as hoped.

Speaking at the Economic Club of New York, the head of the US central banking system claimed that the country is presently experiencing a "jobless recovery" - with young men most at risk of unemployment.

Mr Bernanke - a former economics professor at Princeton University - highlighted the labor market as an "area of great concern"

He said: "Jobs are likely to remain scarce for some time, keeping households cautious about spending.

"[Unemployment] will decline only slowly if economic growth remains moderate, as I expect."

Last week, the Blue Chip Economic Indicators suggested that the US unemployment rate is unlikely to experience a sustained fall below seven per cent until 2013.