Crisis Legal NewsClick here to add this website to your favorites
  rss
Crisis News Search >>>



The following are highlights of Federal Reserve Chairman Ben Bernanke's testimony on Tuesday to the Senate Banking Committee on the Fed semiannual report on monetary policy and the economy.


BERNANKE ON PAYING INTEREST ON BANK RESERVES:

"The banks are nervous about lending given their concerns about their own capital positions and about risk aversion and credit issues in the market place. In a way, what the Fed is doing is borrowing by paying interest on reserves to the banks. That's where we get the money and we're standing in between the banks and the market place using that money, recycling it into commercial paper, asset-backed securities and other forms of credit. In a way we are becoming the counterparty between the markets and the banks. When the banks feel they have opportunities to invest, they will. That will begin to create expansion in credit and money supply. That will be the signal for the Fed to begin to pull back. Right now, it's clear banks are more willing to hold reserves than they are to make loans."

BERNANKE ON DEMAND FOR U.S. TREASURIES:

"It seems to be, at least for now, that the dollar and U.S. debt are still very attractive around the world. There is a lot of demand for holding our Treasuries. That being said, we can't go running trillion dollar deficits indefinitely and it's going to be very important as we emerge from the crisis, as we begin to go into recovery stage that we get control of the fiscal situation and begin to bring down the deficit to a sustainable level. For the moment, foreign demand for U.S. securities is strong, but if we don't get control eventually they are going to lose confidence."


© Crisis Legal News - All Rights Reserved.

The content contained on the web site has been prepared by Legal Crisis News
as a service to the internet community and is not intended to constitute legal advice or
a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 Law Firm Web Design Information
Law Promo can construct your law firm a brand new responsive website, or help you redesign your existing site to secure your place in the mobile world. We believe our work speaks for itself by showcasing quality design while reflecting our extensive experience in the online legal marketing industry. Law Firm Website Designs by Law Promo.| Law Firm Logo Design
   Latest Crisis Legal News
   Sponsored Links
Chicago Business Law Attorney
Corporate Litigation Attorneys
www.rothlawgroup.com
Fort Lauderdale Criminal Defense Lawyer
Miami Sex Crimes Lawyer
www.mishalilaw.com
Fort Washington Employment Law Firm
Attorney Marc E. Weinstein
www.meweinsteinlaw.com
Santa Ana Workers' Compensation Lawyers
www.gentryashtonlaw.com
Car Accidents Attorneys
New Rochelle Personal Injury
www.kboattorneys.com
Eugene Criminal Defense
Law Office of Max J Mizejewski
Family Law. Call 541.505.9872
www.mjmlawoffice.com
CPA Accounting Web Design
Finanace Office Web Designs
www.webpromo.com
Lorain Elyria Divorce Lawyer
www.loraindivorceattorney.com
New York Adoption Lawyers
New York Foster Care Lawyers
Adoption Pre-Certification
www.lawrsm.com
Cobb County Criminal Attorney
Georgia Criminal Defense Lawyer
www.andrewschwartzlaw.com
San Francisco Trademark Lawyer
San Jose Trademark Lawyer
www.onulawfirm.com
Eugene Chapter 7 Bankruptcy Lawyer
Oregon Chapter 7 Bankruptcy Lawyer
www.willamettevalleybankruptcy.com