• Fed Chairman Bernanke's Lecture: "Recent stress tests showed "significant" improvement in the stability of banks”

Market news

29 March 2012

Fed Chairman Bernanke's Lecture: "Recent stress tests showed "significant" improvement in the stability of banks”

  • Lower long-term interest rates have helped to stimulate the recovery of

  • The influence of interest rates in the housing market is "weaker than hoped for"

  • The credibility of the Fed helped to lower inflation expectations remain

  • A more transparent mechanism of communication can improve the effectiveness of monetary policy

  • The rate of recovery "very sluggish"

  • The unemployment rate remains "painfully high"

  • Concerns about the fiscal problems in Europe have created tensions in the markets

  • The crisis highlighted the need to maintain financial stability

  • Laid the foundations for a "slow but steady" economic recovery

  • New regulatory measures will reduce but not eliminate the risk of future crises

  • In many respects, the banks are stronger than before the crisis

  • The Fed prints money to buy assets

  • The Fed "quite successfully" kept inflation low

  • Forecasts on the rates are based on "the current vision of the economy," the leaders of the Fed

  • Technologies are becoming more powerful engine of economic growth

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