Speaking at a panel discussion at the European Central Bank, Fed Chairman Ben Bernanke is said that while monetary policy has not resolved the financial market crisis, global policy-makers stand ready to take further measures if needed.
"The current financial crisis and global economic slowdown likewise have been an occasion for unprecedented international policy coordination, within Europe but also globally," said the Fed Chairman. "For example, in its regulatory capacity, the Federal Reserve has worked closely with regulators and supervisors from a number of European nations, and we are active participants in the international Financial Stability Forum and the standard-setting bodies operating under the aegis of the Bank for International Settlements.
"My focus today, however, will be cooperation in monetary policy and, especially, in the meeting of the liquidity needs of our increasingly globalized financial markets," he added.
Going further, central banks will continue to offer liquidity to the financial system, which has proven somewhat successful in thawing credit markets and pledged that policy-makers will continue to monitor the situation closely.
The comments come ahead of a panel discussion in which Bernanke will join European Central Bank President Jean-Claude Trichet, Stanley Fisher, Governor of the Israeli Central Bank, Guillermo Ortiz, Governor of the Bank of Mexico, and Su Ning, Deputy Governor of the People's Bank of China.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008