Bernanke Says Financial Market Still In Limbo, Pledges Fed Will Help Maintain Liquidity
- May 14, 2008
Washington, D.C.–U.S. Federal Reserve Chairman Ben Bernanke called the status of the financial market “far from normal” Tuesday and warned that no regulation could prevent another liquidity crisis, the Times Online reports.Bernanke, speaking via satellite to a financial markets conference audience, said the Fed was ready to raise the amount lent to commercial banks to keep a steady state of liquidity.Noting that the process could “take some time,” he also encouraged fund management groups and banks to raise new capital for potential future upsets and suggested they enhance their risk management measures.Bernanke’s comments–along with negative U.S. home price results and rough retail sales numbers for April–weighed on the New York stock market Tuesday. The Dow Jones industrial average closed 44.10 points down at 12,832.20.