Ben Bernanke: Europe
Poses Risks to US Economy
Europe's economic problems have already slowed U.S. exports, hurt business and consumer confidence, and put pressure of American financial markets and institutions, Bernanke said.
"The situation in Europe poses significant risks to the U.S. financial
system and economy and must be monitored closely. As always, the Federal
Reserve remains prepared to take action as needed to protect the U.S.
financial system and economy in the event that financial stresses
escalate," he said.
Fed has also tried to cut longer term interest rates with two massive
purchases of bonds. Many stories in the financial press have been
speculating that a third round of such "quantitative easing" might be in
the works, but Bernanke offered no specifics in Thursday's prepared