Rep. Tom Fenney (R-Fl.) says that recent government bailouts in the financial sector are socializing market risk while profits stay on Wall Street. (0:30)

 

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The Senate Banking, Housing and Urban Affairs Committee held a full committee hearing on the Federal Reserve’s semiannual monetary policy report to Congress. Sen. Chris Dodd (D-Conn.) presided over the hearing and said that in considering the state of the U.S. economy, it is important to distinguish between fear and facts. Dodd explained that in the country’s markets today, in particular during the turmoil of recent days, far too many actions are being driven by fear, and are ignoring crucial facts. This neglect of the facts, Dodd said, has caused Americans to experience unprecedented hardship and uncertainties, and now more than ever, they need to know when things will start to turn around and when the country will get back on track. (more…)

Federal Reserve Board Chairman Ben Bernanke says financial regulatory restructuring is not likely to happen in the short term, but is optimistic that the Reserve has enough tools now to address the current instabilities. (0:34)

 

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Dr. Benn Steil of the Council on International Economics says that the Federal Reserve’s low interest rates are below the rate of inflation. (0:22)

 

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Kohn declares that institutions are well-capitalized, but it may be necessary it look into raising more capital in order to safeguard against worst-case scenarios. He also states that liquidity was present, but it was quite strained and left banks stressed and unwilling to lend for as much as three months. (1:22)

 

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