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Bernanke Vows to Combat Mortgage Mess

Fed ready to step in; Wall Street holds out hope for rate cuts

By Wesley Oliver, Newser Staff

Posted Aug 31, 2007 1:07 PM CDT

(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.”

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, 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)

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)

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Bernanke Vows to Combat Mortgage Mess

Fed ready to step in; Wall Street holds out hope for rate cuts

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Recession Risk Seen in Mortgage Misery

Top economist urges immediate rate cuts to avoid catstrophe

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Bernanke Tosses Out His Rule Book

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Central banks around the world try to ease liquidity problem

Bernanke Signals New Rate Cuts

Says central bank 'will act as needed' to further minimize economic risks

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Bernanke Vows to Combat Mortgage Mess

Fed ready to step in; Wall Street holds out hope for rate cuts

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OTHER STORIES ON OUR RADAR

More on Fed's Comments

Opinion and Analysis

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

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Recession Risk Seen in Mortgage Misery

Top economist urges immediate rate cuts to avoid catstrophe

Bush Readies Mortgage Bailout

Aid plan would back new loans for homeowners in 'upside-down' mortgages

Bernanke Tosses Out His Rule Book

As Wall Streets meltdown accelerates, the Fed chief adapts on the fly

Fed Pours $200B Into Global Credit Relief Push

Central banks around the world try to ease liquidity problem

Bernanke Signals New Rate Cuts

Says central bank 'will act as needed' to further minimize economic risks

About Us

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Newser By Users

Community

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Tools

More News

What is Newser?