
	Friday August 29, 2008

26,235 Active Members Register

Welcome, Guest Sign In

Home

Latest Headlines

Popular Stories

Bookmark Us

Reader Comments

SUBSCRIBE

SEARCH OUR SITE


30 Yr Fix	6.40%	-0.07%
15 Yr Fix	5.93%	-0.07%
1 Yr ARM	5.33%	0.04%
5/1 ARM	6.03%	0.04%
30 Yr Tres	4.38%	-0.01%
Fed Prime	5.00%	-0.25%
Mortgage Rates \| Blog

MND Features

-	Wiki
-	Video News
-	Mortgage License Information
-	Real Estate License Information
-	Mortgage Content Syndication
-	Mortgage Fraud
-	Housing Bubble

News Archives

Submit A News Tip
or Story Idea

Free Subscription To News Alerts
Stay up to date on breaking news with our free News Alert Service.

Bernanke says U.S. Economy is Facing Numerous Challenges

685 Views - Printer Friendly - Email This Story To A Friend

ADD NEWS TO YOUR WEBSITE

Appearing before the Senate Banking Committee at the semiannual Humphrey-Hawkins testimony on Tuesday, Federal Reserve Chairman Ben Bernanke said the economy is facing numerous difficulties.

"The U.S. economy and financial system have confronted some significant challenges thus far in 2008.The contraction in housing activity that began in 2006 and the associated deterioration in mortgage markets that became evident last year have led to sizable losses at financial institutions and a sharp tightening in overall credit conditions ," said Bernanke.

Bernanke said that he sees significant downside risks to growth outlook as many firms are under considerable stress. Bernanke added that judging the balance of risks is challenging and that he sees a limited pass-through of oil to consumer prices.

"The effects of the housing contraction and of the financial headwinds on spending and economic activity have been compounded by rapid increases in the prices of energy and other commodities, which have sapped household purchasing power even as they have boosted inflation," said Bernanke.

Bernanke warned that averting a long-term rise in inflation is critical and that businesses will likely be cautious in their spending plans.

Bernanke predicted that inflation should slow as growth picks up in 2009.

by Steve Stecyk and edited by Cristina Markham
©CEP News Ltd. 2008

Story Views: 685 | Permalink

Story Tools

Email This Story To A Friend

Subscribe To News Alerts

Related Tags

Select a Tag for more information related to that Tag. (View All Tags)

Comments (0)

No Comments At This Time

Post A Comment

Please fill out the form below to submit a comment.

Name:
(Required - Type Anonymous or Use First Name Only if Private)

Email Address:
(Not Required So No Fake Emails Please.)

URL or Weblog:
(Leave Blank If You Don't Have One - Use http://)

Comments:
(Please keep comments on topic. No HTML Allowed. No Advertisng.)
Please Note: Due to Comment Spam, all comments are reviewed by hand. Most comments will appear shortly after submission but it may take up to 12 hours to appear. If you would like to come back, click here to Bookmark the page.
PLEASE DO NOT USE ALL CAPS

Character Count = (5000 Character Limit)

If you would like to leave a longer comment, please submit your comments in 5000 character increments and we will merge your comments.

Notify me via email when my comment is approved.

Note: Please don't bother spamming. All submissions are reviewed by our our editorial staff. Comment spam and irrelevant links will not be approved.

NEW VIDEO
(1 New Today)

NEW! Waiting for a Housing Rebound

Lazear on the U.S. Economy

Reader Comments (More)

I don't often tell people they are absolutly right but you are! Your post was complete and well written. To make it my post I woul...
Read

Florida is not the only state to honor felons in such a manner. Indiana used to be just as bad. I worked for one of the worst croo...
Read

Did any of you read this correctly? Can you believe this was snuck in on a housing bill? "Starting in 2011, merchant banks will be...
Read

Home - Contact - Sitemap - Disclaimer - Privacy Statement - Advertising

All Content Copyright © 2003 - 2008 Brown House Media, Inc. All Rights Reserved.
Reproduction in whole or in part in any form without the express written permission of MortgageNewsDaily.com is prohibited.