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.”