WASHINGTON—Federal Reserve Chairman, Ben Bernanke, says good times are ahead for the economy.

Tuesday, Bernanke told Congress there's good news in the household sector with growth in consumer spending and the economy should pull out of a recession and start growing again later this year.

However, Bernanke says Americans can still expect increased unemployment in the coming months.

"We expect that the recovery will only gradually gain momentum and that economic slack will diminish slowly. In particular, businesses are likely to be cautious about hiring...the unemployment rate could remain high for a time, even after economic growth resumes," says Bernanke.

In addition, he warns that he has substantial concerns about the stability of the banking industry.