Summary
WASHINGTON (HedgeWorld.com) - Federal Reserve Chairman Ben Bernanke in a closely watched speech on Friday [Aug. 31] gave the markets some comfort that the Fed will intervene if necessary, but said that would happen only in the case of an economic slowdown. An hour after Mr. Bernanke spoke, President George W. Bush unveiled a plan to help Americans with bad credit keep their homes.
Both men sought to address growing concerns voiced by market participants and members of the Congress about the wave of defaults in the subprime mortgage sector, and the ripple effect that has had on credit and equity markets.See the full content of this document
Extract
Fed, Bush Respond to Market Fears
"Well-functioning financial markets are essential for a prosperous economy. As the nation's central bank, the Federal Reserve seeks to promote general financial stability and to help to ensure that financial markets function in an orderly manner," said Mr. Bernanke in a speech before the Federal Reserve Bank of Kansas City's Economic Symposium in Jackson Hole, Wyo. Mr...
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