Skip to: Content
Skip to: Site Navigation
Skip to: Search

August 21, 2008 8:24:45 AM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Bernanke Vows to Combat Mortgage Mess

Posted Aug 31, 07 1:07 PM CDT in Business,  US 

(Newser) – In his first comments on the subprime mortgage meltdown, Ben Bernanke today vowed the Federal Reserve “will act as needed” to contain the turmoil, preventing it from weakening the broader economy. The Fed chief pledged the central bank would “take additional actions” if necessary. “It is clear now the Fed is on the ball,” an economist said.

The comments, at a Wyoming symposium, inspired chatter that the Fed would cut rates at next month's policy meeting, Bloomberg says. But Bernanke also made it clear that investors who have made questionable decisions shouldn't expect the Fed to rescue them, saying it was not the bank’s “responsibility.”

Source Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Bush Readies Mortgage Bailout

    Mar 29, 08 6:48 AM CDT
    Homeowners facing foreclosure could soon be getting a helping hand from the Bush administration, the Washington Post reports. Details are being finalized on a plan that would see portions of loans forgiven for people who now owe the bank more money than their house is worth. The remainder would be refinanced into smaller mortgages backed by public funds. More »

  • Bernanke Tosses Out His Rule Book

    Mar 16, 08 9:19 AM CDT
    Bernanke Tosses Out His Rule Book With a recession and worsening meltdown on Wall Street looming, Fed chief Ben Bernanke has dumped textbook central bank economic policy, reports the New York Times. Last week's bailout of Bear Stearns, for example, seemed to fly in the face of his previous reluctance to rescue big institutions. And it came in the same week the Fed made $200 billion available to investment banks and another $100 billion for banks and thrifts. More »

  • Fed Pours $200B Into Global Credit Relief Push

    Mar 11, 08 10:15 AM CDT
    Fed Pours $200B Into Global Credit Relief Push The Fed will inject huge quantities of cash into financial markets as part of a coordinated global attack on the credit crisis, Ben Bernanke announced today. The central bank will loan out another $200 billion, this time on a 28-day basis rather than overnight, the AP reports. The effort will coordinate with the European Central Bank and the central banks of Canada, England, and Switzerland. More »

  • Bernanke Signals New Rate Cuts

    Feb 27, 08 9:15 AM CST
    Bernanke Signals New Rate Cuts Federal Reserve Chairman Ben Bernanke today said that the board stands ready to cut interest rates again to give the economy "adequate insurance against downside risks," reports the Wall Street Journal. The move, which follows 2.25% in cuts to the key rate since September, is widely expected at the Fed's March 18 meeting. More »

  • Fed Sees Slower Growth, Higher Unemployment

    Feb 20, 08 6:58 PM CST
    Fed Sees Slower Growth, Higher Unemployment The Federal Reserve issued a bleak assessment of the economy today, predicting weak growth and rising unemployment this year. Fed officials expect the economy to grow between 1.3% and 2% in 2008, the slowest in five years, the New York Times reports. A separate report today showed consumer prices rising, putting the Fed in a tricky spot as it weighs another rate cut against fears of inflation. More »

President Bush, center, accompanied by Treasury Secretary Henry Paulson, right, and Housing Secretary Alphonso Jackson, makes a statement on home ownership financing, Friday, Aug. 31, 2007, in the Rose...   (Associated Press)
Federal Reserve Bank Chairman Ben Bernanke steps out on a balcony following his speech to the Federal Reserve Bank of Kansas City Economic Symposium, Friday, Aug. 31, 2007, at the Jackson Lake Lodge at...   (Associated Press)
Federal Reserve Chairman Ben Bernanke appears before Congress in this file photo from Wednesday, Feb. 15, 2006, in Washington. The Federal Reserve approved a half-percentage point cut in its discount...   (Associated Press)
Federal Reserve Board Chairman Ben Bernanke testifies on Capitol Hill in Washington, Thursday, July 19, 2007, as he delivers his semi-annual monetary report to the Senate Banking Committee. (AP Photo/Dennis...   (Associated Press)
Specialist Nicholas R. Brigandi, facing camera, who is retiring, hugs a colleague before he rang the closing bell at the New York Stock Exchange, Wednesday, July 18, 2007. Brigandi rang the bell with...   (Associated Press)
Federal Reserve Bank Chairman Ben Bernanke, right, shares a light moment with vice-chairman Donald Kohn as they appear before television cameras during a break in the Federal Reserve Bank of Kansas City...   (Associated Press)
Federal Reserve Bank Chairman Ben Bernanke, right, talks with vice-chairman Donald Kohn as they appear before television cameras during a break in the Federal Reserve Bank of Kansas City Economic Symposium,...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

More on Fed's Comments

Opinion and Analysis

Threads (1 of 3)

Tags

George W. Bush  • US economy  • subprime mortgages  • Federal Reserve  • Ben Bernanke  • interest rate  • credit market  • Federal Housing Administration  • federal fund rates



Today's Most Popular


Other US Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »