August 30, 2007
Bernanke Reassures Investors
Federal Reserve Chairman Ben Bernanke promised that the Fed is keeping a close eye on financial markets and that it "is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets."
His statements were made in a letter written to Sen. Charles Schumer, D-N.Y., released Wednesday. Bernanke has come under criticism for refusing to cut the federal interest rate or to loosen regulations on mortgage funding companies Fannie Mae and Freddie Mac during a recent financial shake-up that sent stock markets worldwide tumbling.
However, Bernanke's reassurances helped Asian markets and Wall Street rebound on Thursday.
The Wall Street Journal reports that Bernanke is distinguishing himself from his predecessor, Alan Greenspan, by refusing, so far, to bail out investors and "save the system."
Mr. Bernanke is set to speak on the outlook for the market tomorrow at the Federal Reserve Bank of Kansas City's annual symposium in Jackson Hole, Wyo.
Posted at 12:52 PM
Posted to:
Charles Schumer, Congress, Economy, Senate
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