Bernanke Live on the Hill….

Bernanke Testifying to Senate Banking Committee

Watch it on CSPAN or CNBC LIVE

Bernanke prepared remarks just released:

Long term FED projections suggest full economic recovery 2-3 years out

Overall and core inflation expected to remain low for next 2 years

Downside risks to economy outweigh upside risks

Concerned effect of global slowdown could affect US more than currently expected

Strong government action essential to break  ‘adverse feedback loop’ (of global slowdown)

If govt actions restore financial stability, recession could end in 09 with recovery in 2010 (MiM here HUGE if there eh?)

housing and bank plans should stabilize markets and restore confidence

Fed is committed to additional transparency of its balance sheet (MiM again, yeah now that the FOIA lawsuits were won by the media heh)

Fed is committed to using all available tools to stimulate economy

Unemployment and deterioration of financial markets have accelerated rapidly

From CNBC:

the Fed remains busy behind the scenes and is counting on two massive programs to help spur consumer lending and stir some revival in the depressed housing market.

In one of these, the central bank has begun buying up to $600 billion worth of debt and mortgage securities backed by government-related mortgage finance providers, a program that has helped drive down mortgage costs.

In the other, the Fed is poised to throw a life-line to consumers with an initiative aimed at making it easier to get loans for homes, cars and on credit cards that could be up and running within a couple weeks.

Originally envisioned to provide $200 billion dollars to support lending, the Fed and Treasury said on Feb. 10 that they were ramping up the program to as much as $1 trillion, with the Treasury agreeing to put up $100 billion to protect the central bank from potential losses.

Fed officials acknowledged at their policy-setting meeting at the end of January that the economy was likely to shrink this year and that unemployment would rise to near 9 percent…Offering a particularly downbeat assessment, officials said they saw no signs of stabilization in the housing market and warned any recovery would be unusually gradual and prolonged.

February 24, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Finance, Labor Department, Obama Administration, Politics, TARP, Uncategorized, Unemployment Statistics, Wall St.

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  1. » Bernanke Live on the Hill…. replied:

    […] shaunak wrote an interesting post today onHere’s a quick excerptBernanke Testifying to Senate Banking Committee Watch it on CSPAN or CNBC LIVE Bernanke prepared rem […]

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