WASHINGTON — Federal Reserve Chairman Ben Bernanke predicted yesterday that the economy will rebound from its anemic start of the year even if the housing slump persists. Wall Street slid, taking the news as a sign the Fed won't lower interest rates.

Economic growth in the year's first three months nearly stalled, logging just a 0.6 percent pace. It was the worst quarterly showing in more than four years.

However, Bernanke said, he believes some forces that figured prominently in that poor performance — including a bloated trade deficit, cutbacks by businesses in inventory investment and weak federal defense spending — "seem likely to be at least partially reversed in the near term."

Bernanke made his comments via satellite to an international monetary conference in Cape Town, South Africa. In his talk, he stuck to the Fed's forecast that the economy in coming quarters will advance "at a moderate pace, close to or slightly below the economy's trend rate of expansion." A copy of his prepared remarks was made available in Washington.

Some economists put the economy's trend, or normal annual growth rate, at around 3 percent to 3.25 percent.

On Wall Street, stocks fell as investors took Bernanke's remarks to suggest the Federal Reserve has little reason to lower interest rates anytime soon. The Dow Jones, having slid more than 100 points earlier in the session, closed down 80.86 points to 13,595.46.

The Fed meets next on June 27 and 28, and many economists predict policymakers will again hold a key interest rate steady at 5.25 percent, where it has been for a year. "The Fed remains comfortably on the sidelines," said Scott Anderson, economist at Wells Fargo Economics. Many economists say rates will stay where they are for the rest of this year.

Even with Bernanke's hopeful outlook, the Fed chief made clear once again that the painful residential real-estate bust, which started last year, "appears likely to remain a drag on economic growth for somewhat longer than previously expected," he said.

Residential construction will likely remain "subdued for a time" until builders can pare down a backlog of unsold new homes, he noted.

But so far, the housing market's problems haven't spread through the broader economy in a significant way, Bernanke said. "We have not seen major spillovers from housing onto other sectors of the economy," he observed.

On the inflation front, Bernanke said underlying inflation, which excludes food and energy prices, remains "somewhat elevated" despite some improvements. Bernanke again clung to the Fed's forecast that underlying inflation seems likely to moderate gradually over time. Still, he said, there is a big risk to the economy if that forecast doesn't materialize.

Besides discussing the economy, Bernanke also talked about troubles plaguing both lenders and borrowers with high-risk "subprime" mortgages provided to people with spotty credit histories.

Foreclosures and delinquencies have spiked as rising interest rates and falling home prices made it difficult for some people to keep up with their payments.

Bernanke predicted there will be further increases in delinquencies and foreclosures this year and next as interest rates on many subprime adjustable-rate loans will go up as they reset. However, he said that troubles in the subprime mortgage market are "unlikely to seriously spill over to the broader economy or the financial system."