Bernanke says Fed has exit strategy from credit policy

March 20, 2009 by · Leave a Comment
Filed under: Policy News 

Well I hope he will be able to keep his word on that.  I think right now if all the loans were reigned in right now we would have a full collapse and I am not sure how we are going to write-off all these losses and still keep these banks in business?

News:

Federal Reserve Chairman Ben Bernanke on Friday said the Fed’s buying of longer-dated U.S. Treasuries would “taper off” when the economy no longer needed help, allowing the Fed to cease its emergency support.

“The time will come when the economy will be growing, the housing market will be recovering, that support will no longer be needed. And we will of course at that point taper off that support,” Bernanke told community bankers in Phoenix, Arizona.

The U.S. central bank on Wednesday surprised investors with plans to buy up to $300 billion of longer-term U.S. Treasury securities and an additional $850 billion of agency mortgage debt to ease a deepening U.S. recession. It also confirmed it would hold interest rates near zero for “an extended period”.

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