Bernanke financial crisis taking toll on economy
Posted By ap 1 year, 2 months ago in Business & FinanceJACKSON, Wyo. (AP) _ Federal Reserve Chairman Ben Bernanke said Friday the financial crisis that has pounded the country — coupled with higher inflation — is taking a toll on the economy and poses a major challenge to Fed policymakers as they try to restore stability.
"Although we have seen some improved functioning in some markets, the financial storm that reached gale force" around this time last year "has not yet subsided, and its effects on the broader economy are becoming apparent in the form of softening economic activity and rising unemployment," Bernanke said in a speech to a high-profile economics conference here.
Although Bernanke welcomed the recent drops in prices for oil and other commodities, and believes inflation will moderate this year and next, the Fed chief said the inflation outlook remains highly uncertain.
The Fed, he said, would monitor the situation closely and will "act as necessary" to make sure that inflation doesn't get out of hand.
The current financial and economic environment is one of the most challenging to Fed policymakers "in memory," he acknowledged.
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badluck11 year, 1 month ago
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Mr. Bernanke must have stuck his head in the sand the day after getting the fed job. It does not take a rocket scientist to get what his talking about. He has the power to to push to get mortgage rates at 5% across the board for everyone in a primary resident and 6.5% for all credit cards. Things will mellow out and the economy will start churning it's engine again. This wall street fiasco was a classic ponzi scheme (on the streets a pyramid scheme). The savings and loan gang came up on criminal charges, the wall street baron even went to jail and even the enron gang came up on criminal charges... Mr. Barnanke why don't you declare what went wrong in this "toxic mortgage" crisis a criminal conspiracy on a gigantic scale and declare individuals should face criminal indictment. If you happen to read this or here about this email, please post your response Mr. Bernanke, the public would like you to pull your head out the sand and respond.
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