Bernanke: Stage Set for Recovery

Fear not, investors, Fed chairman insists
By Kevin Spak,  Newser Staff
Posted Oct 14, 2008 6:25 AM CDT
Japan Finance Minister Shoichi Nakagawa, left, and US Federal Reserve Chairman Ben Bernanke, right, take their seats at the International Monetary Fund headquarters, Saturday, Oct. 11, 2008.   (AP Photo/J. Scott Applewhite)
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(Newser) – Americans face a historic financial crisis, but they needn’t worry because policy makers have responded in time, writes Ben Bernanke in today’s Wall Street Journal. “History teaches us that government engagement in times of severe financial crisis often arrives very late,” Bernanke says. “Fortunately, that is not the situation we face today.” He expects this morning’s soon-to-be-announced steps to “restore more normal market functioning.”

This morning’s moves, which, Bernanke is quick to point out, are facilitated by Congress’ passage of the bailout plan, are consistent with a heartening international response from the G-7.  These moves should address the root of the problem: the loss of investor and public confidence. Challenges will remain, of course, but “the tools are in place,” Bernanke writes. “We will not stand down until we have achieved our goals.” (Read more Ben Bernanke stories.)