In an official testimony to the U.S. House on Wednesday morning, the Chairman of Federal Reserve Ben Bernanke discussed and outlined the Fed’s role and plan of action to combat the continuing financial crisis in the United States.
In his address, Bernanke touched on the role of the Federal Reserve and how it governs the multitude of interdependent financial institutions across the nation and how the Fed sees their future. He also outlined how the Federal Reserve is helping the citizens of the United States maintain a stable financial situation even at a time of crisis.
“The financial crisis has made clear that all financial institutions are so large and interconnected that their failure could threaten the stability of the financial system. ... The economy must be subject to strong consolidated supervision,” Bernanke said.
The U.S. Congress is continuing to review the regulations for the government’s limitations in the U.S. financial system. Bernanke said that the Federal Reserve is aligned with their course of action.
Bernanke also seems to believe that without expanded involvement from the government, the nation’s economy may be unstable.
“The Federal Reserve strongly supports ongoing efforts in the Congress to reform financial regulation and close existing gaps in the regulatory framework. While we await passage of comprehensive reform legislation, we have been conducting an intensive self-examination of our regulatory and supervisory performance and have been actively implementing improvements,” stated Bernanke.
Bernanke closed his testimony by reminding House members of the Federal Reserve’s expertise and highlighted their recent introspection that has made them ready to take more action to tackle the financial situation of the world’s largest economy.
In his address, Bernanke touched on the role of the Federal Reserve and how it governs the multitude of interdependent financial institutions across the nation and how the Fed sees their future. He also outlined how the Federal Reserve is helping the citizens of the United States maintain a stable financial situation even at a time of crisis.
“The financial crisis has made clear that all financial institutions are so large and interconnected that their failure could threaten the stability of the financial system. ... The economy must be subject to strong consolidated supervision,” Bernanke said.
The U.S. Congress is continuing to review the regulations for the government’s limitations in the U.S. financial system. Bernanke said that the Federal Reserve is aligned with their course of action.
Bernanke also seems to believe that without expanded involvement from the government, the nation’s economy may be unstable.
“The Federal Reserve strongly supports ongoing efforts in the Congress to reform financial regulation and close existing gaps in the regulatory framework. While we await passage of comprehensive reform legislation, we have been conducting an intensive self-examination of our regulatory and supervisory performance and have been actively implementing improvements,” stated Bernanke.
Bernanke closed his testimony by reminding House members of the Federal Reserve’s expertise and highlighted their recent introspection that has made them ready to take more action to tackle the financial situation of the world’s largest economy.
