The mighty men finally decided to come forward to discuss and explain the course of action they took and are still undertaking to overcome the present financial and banking crisis.The first one appeared on CBS’s “60 Minutes” (on Sunday March 15th 2009) is the US Federal Reserve Chairman ‘Ben Bernanke’. Now on coming Sunday (March 22nd 2009 at 7 p.m. ET/PT.) ‘President Barrack Obama’ will appear for interview on CBS’s “60 Minutes”, to talk about his first two months in office and also provide further updates on economic and financial scenario.
As Chairman Bernanke is concerned his opinions usually interest me. I wonder what’s going on in his mind under the severe pressure of his job, in toughest situations like these. Though it was his first appearance on TV but he regularly keep delivering Speeches that can be found on Federal Reserve Website.
With emergency powers to handle financial crisis, Chairman Bernanke aggressive approach of supplying trillion dollars attract criticism from certain quarters. But he possessed this trait to concentrate on a main issue with sound determination, to do whatever it takes. He accepts that to stabilize the financial and banking system fed keep supplying more money to preserve liquidity in credit markets.
It seems quite awry to even forecast for next month or so, amid uncertainties and scary economic data like unemployment rates that keep on rising and more people losing their jobs, but this is not a case if you are Federal Reserve Chairman, as you become the only one who knows all more precisely than anyone out there!
After fixing interest rates at lowest levels, Fed still striving to maintain enough liquidity by injecting large amount of cash into the system. As Bernanke believes that the basic action that Fed lacked during great depression of 1930’s was that no support has been given to save collapsing banks or declining liquidity,
He also pointed out before that if banks reduce lending in view of a recession, this directly hurts the economy and creates a vicious cycle in which the banks and businesses cease to grow amid high unemployment rates.
Well, the impact of the different measures undertaken by mighty regulators yield required results or not will soon be determined in coming months between second half to the end of current year.
Of course, Chairman Bernanke has concerned about the facts but he also pointed out that if regulators do stabilize the financial system successfully, this will restricts the decline, which eventually, will set the basis for recovery. Let’s hope this may happen soon.
Related Links:
http://www.ino.com/
http://www.federalreserve.gov/
http://www.cbsnews.com/stories/2009/03/12/60minutes/main4862191.shtml
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Financial Federal Reserve Regulators Crisis Economy Banks fed Liquidity Mighty Bernanke Chairman President US economy Banking system liquidity explore Interest rates
