Ben Bernanke Speaks 20090505

[Tams 20]

http://www.bloomberg.com/markets/ecalendar/index.html

 

 

United States : Chairman Speech

Released For 5/5/2009 10:00:00 AM

 

Description

Federal Reserve Chairman Ben Bernanke testifies before Joint Economic Committee in Washington on the economic outlook.

 

Highlights

This morning, Fed Chairman Ben Bernanke spoke before Joint Economic Committee in Washington on the economic outlook.

 

In his prepared remarks, Bernanke was a little more optimistic about pending recovery – but still offered a number of caveats. Notably, he sees the recession bottoming this year with positive growth later this year. Bernanke anticipates monetary policy and fiscal stimulus eventually boosting demand.

 

Also, he notes that recession overseas is slowing. He noted that housing sales appear to be improving due to distressed prices from foreclosures but homebuilders are still working off inventories.

 

The Fed chair, however, warned that a relapse of financial markets could stall recovery.

 

Bernanke still expects further sizeable job losses in coming months.

 

On the issue of bank stress tests, he stated that banks in need of improvement must implement capital plans within six months after the stress tests.

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"The Fed chair, however, warned that a relapse of financial markets could stall recovery."

 

Is he doubting the dynamic duo's ( with Geithner) ability to manipulate the markets?