In a statement this afternoon, Ben Bernanke said that although the Federal Reserve is “prepared to take further steps to lift the U.S. economy if it weakens,” there are no imminent plans to do so. He added that he expected economic growth to continue at a “moderate pace” for the remainder of 2012, then tacked on a little bit of blame for the slow economy to the European financial crisis. He blamed “the crisis in Europe” not only for dragging down U.S. exports and weighing down consumer confidence, but also, as a result of the economic impact, depressing the housing market recovery as well. He praised lenders for recently loosening up lending standards to a “generally less restrictive level,” but admitted that “many prospective home buyers cannot obtain mortgages” due to impaired creditworthiness and still-tight borrowing requirements.
Bernanke went on to say that Fed stress tests indicate that the 19 largest banks in the country have added about $300 billion to their capital since 2009. The Fed believes that this should hopefully loosen up credit in the near future.
Do you think that we need more “aid” from the Fed?
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