Fed will act as needed to combat risks: Bernanke

[sabra]

Source: ABC News/Reuters

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday the central bank will act as needed to help the struggling economy, but said the Fed has to be mindful that growth should pick up later in the year.

"The (Federal Open Market Committee) will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks," Bernanke said in remarks prepared for delivery to the Senate Banking Committee.

He said the outlook for the economy had worsened in recent months and risks to growth had picked up. Bernanke said he expects sluggish growth to give way to a somewhat stronger expansion later this year, with overall inflation moderating, and the Fed must consider the effects of fiscal and monetary stimulus in its policy-making.

"Our policy stance must be determined in light of the medium-term forecast for real activity and inflation, as well as the risks to that forecast," he said.

Read more: http://abcnews.go.com/Business/wireStory?id=4290460

[mother earth]

1. Thanks for that news, Bernanke. No need to extend unemployment

benefits, no...let them eat cake! Every citizen in this country agrees that Bush's stimulus package is a complete joke, now we have this earth shattering news. A little slow on the uptake wouldn't you say?

I don't know how many people have to be added to the welfare rolls before they realize that unemployment benefits need to be extended and people need health care, not to mention those ever elusive JOBS!!!!!!

Do they need a death count before they wake up?

[TwilightGardener]

2. On CSPAN3 now, Chris Dodd is Chairman:

http://www.cspan.org/watch/cs_cspan3_wm.asp?Cat=TV&Code=CS3

[sinkingfeeling]

3. Yawn.

[kirby]

4. Bernanke's voice sounds shakey...

Like he is scared or nervous. Odd. (I'm listening to audio only, not video).

[TwilightGardener]

5. Yikes, Bernanke, speak ENGLISH! He's over my head, with the acronyms and

terms like "causality" and "promulgate"--total egghead, not user-friendly.

[kirby]

6. For those of us who understand the terminology

he is still not really saying anything. So you aren't missing anything.

[TwilightGardener]

7. Wayne Allard is a dim bulb, trying to tie the "success" of the Surge to

increased financial troubles in the future. He says if we draw down troops, the MIC will suffer and thus we'll all suffer. OK, Brainiac.

[Demeter]

8. The Economy Will "Pick Up"? You Mean It Will Be "Hoovered", Ben, Don't You?

As in Herbert Hoover, that is.

Pick up my eye. Not even in a miniskirt and thigh high boots.

[Baby Snooks]

9. Throwing money down a toilet...

In other words the Federal Reserve will continue to throw money down a toilet in order to keep loaning money to insolvent banks which in turn will keep loaning money to insolvent corporations so the CEOs can continue to "cash out" before the bottom falls out.

[TwilightGardener]

10. LOL! Hagel just characterized the whole econominc stimulus plan

(which he voted against) as "dropping rebate checks from airplanes"--I agree, Chuck, it's silly.

[Earth_First]

11. If the economy is expected to grow in the third and fourth quarters...

Why the economic bailout concerning the stimulus package?

Even WITH the signing of the stimulus package, the results wont arrive until mid-second quarter, when, according to Bernake, the economy is expected to turn around.

1+1 isn't adding up. Unless that is, your name is Bernake.

[TwilightGardener]

12. Maybe the rate of growth is what's worrisome, rather than the fact that

it's growing at all? Maybe it's slowing down? I don't know.

[Javaman]

13. Sing along with me! "put another brick of cash on the fire!" nt

[truthisfreedom]

14. "combat risks"... Yep, folks, meet the new "War on Economic Risks."

Remember the war on drugs and the war on terra? Move over, previous failures. Here comes Daddy!