Bernanke: Let's Keep Working Together
Federal Reserve chairman Ben S. Bernanke hopped the pond for Germany to celebrate the 10th birthday of the euro. Nobody is really celebrating, though, especially with the euro zone now in a recession.
His speech summarized the earthquake rippling through the world financial system and how central bankers are responding. He said the credit squeeze is "a principal cause of the economic slowdown now taking place in many countries."
He also acknowledged that "monetary policy actions have not resolved the ongoing strains in financial markets, including interbank funding markets."
Bernanke left open the possibility of another rate cut: "The continuing volatility of markets and recent indicators of economic performance confirm that challenges remain. For this reason, policymakers will remain in close contact, monitor developments closely and stand ready to take additional steps should conditions warrant."
-- Michael S. Rosenwald
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