NYT: Fed Chairman Says ‘Uncertainties’ Have Grown (3/29)

[babylonsister]

http://www.nytimes.com/2007/03/29/business/29fed.web.html?ex=1332820800&en=28a329c1bf831dc7&ei=5090&partner=rssuserland&emc=rss

Fed Chairman Says ‘Uncertainties’ Have Grown
Doug Mills/The New York Times

Ben S. Bernanke, the chairman of the Federal Reserve, testifying before the Joint Economic Committee on Capitol Hill today.

By EDMUND L. ANDREWS
Published: March 29, 2007

WASHINGTON, March 28 — The chairman of the Federal Reserve acknowledged today that “uncertainties” about the economic outlook have “increased somewhat in recent weeks” and that “turmoil” in the market for subprime home mortgages has created “severe financial problems for many individuals and families.”

But Ben S. Bernanke, the Fed chairman, reiterated in testimony before the Joint Economic Committee of Congress his broadly sanguine view that the United States economy was likely to expand at a moderate pace this year and that inflation was likely to slightly decline.

“The uncertainties around the outlook have increased somewhat in recent weeks,” Mr. Bernanke said. But in his prepared testimony, Mr. Bernanke offered little indication that he wanted to clamp down more tightly on subprime mortgage lenders, which lend money to people with poor credit, or on what a growing number of Democrats view as predatory mortgage lending practices.

“Thus far, the weakness in housing and in some parts of manufacturing does not appear to have spilled over to a significant extent to other sectors of the economy,” Mr. Bernanke said.

Mr. Bernanke said financial institutions were already tightening their lending standards, which would eventually help reduce the current glut of unsold homes on the market. But in the short term, he cautioned, tougher lending standards could further reduce the demand for housing and aggravate the bloated inventories of unsold homes.

Democrats and Republicans on the committee greeted Mr. Bernanke with blunt expressions of worry, particularly about the housing market.

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[ThomCat]

1. Translation: The shit is starting to hit rich people too.

x(

It's totally transparent how little he cared when only poor and middle class people were being affected by the "uncertainty" in our economy.

[Raven]

2. And Nero fiddled while Rome burned.

As long as it's the middle - lower middle class folks who are getting singed.

PS. It was Nero, wasn't it???

[benld74]

3. Too much SH*T to cover up!

[SaveOurDemocracy]

4. Overturning the GOP BANKruptcy bill

should have been part of the Dems first 100 hours. IMO

[kimmerspixelated]

6. MY thoughts exactly!

[whistle]

5. The uncertainties have grown so everything is riskier which means

...smart money leaves while all the stupids remain to pick up the coconuts