Bernanke: Boost Lending for Credit-Worthy Small Businesses

Despite some lenders claiming to be focusing on a small business’s cash flow and relying less on collateral values, credit-worthy business owners continue to have difficulties obtaining funds to stay afloat, Federal Reserve Chairman Ben Bernanke said today.

Fed’s Bernanke: Money ‘By Itself’ Doesn’t Buy Happiness

It was not your typical speech by the Federal Reserve chairman; then again, this was a commencement address at the University of South Carolina in Columbia, about a two-hour drive from Dillon, where Ben Bernanke spent much of his childhood. The Fed chief’s address focused on happiness, and reaffirmed some age-old parental advice: money isn’t everything.

Bernanke: We Already have ‘Systemic Approach’ to Oversight

A day after the Senate approved sweeping new authority for the dismantling of influential failing firms, Federal Reserve Chairman Ben Bernanke said the Central Bank has already adopted a “systemic approach” to oversight. That new regulatory method was derived from experience that helped steer the biggest players of the banking system out of the worst period during the financial crisis, the Fed chairman said.

Bernanke: So Far, ‘Close to Zero’ Effect on Mortgage Rates

Federal Reserve Chairman Ben Bernanke said today the Fed’s end of its purchases of mortgage-backed securities on April 1 has had a “close to zero” effect on mortgage rates so far, and if a deeper housing crisis were to emerge, it could restart the program. “We’re still holding $1.4 trillion in agency MBS and debt … and that amount being taken off the market is having the effect of keeping mortgage rates pretty low,” Bernanke said.

Bernanke: ‘Too Big To Fail’ is Unconscionable, Insidious

Financial institutions such as those that brought the world economy to the brink two years ago present an unconscionable threat and the most “insidious barriers” to competition in financial services, Federal Reserve Chairman Ben Bernanke said today. Speaking at the Independent Community Bankers of America convention in Orlando, Florida, Bernanke unleashed a wave of criticism against “too big to fail” financial firms and offered a three-part outline to prevent such institutions from posing systemic risk.

Bernanke: Fed’s Role Over ‘All Banks’ Helps Monetary Policy

Federal Reserve Chairman Ben Bernanke said today in prepared testimony for a congressional hearing that the Central Bank’s ability to supervise banks of all sizes “significantly” improves its effectiveness in making monetary policy and fostering financial stability. Bernanke’s testimony was prepared for a hearing before the House Financial Services Committee on the Fed’s role as chief regulator over financial institutions.

2nd Fed Official Sheds Doubt on ‘Extended’ Near-Zero Rate

A second Federal Reserve official is on the record as doubting the wisdom of keeping the benchmark interest rate at near zero for an “extended” period of time, as the current policy outlook has stood for several months. St. Louis Federal Reserve Bank President James Bullard told reporters yesterday at St. Cloud State University that he is concerned over the constant reference to a timeline on maintaining the key federal funds rate at 0-.25 percent.

Bernanke: No Rate Hike for Now; Welcomes ‘Review’

Federal Reserve Chairman Ben Bernanke assured Congress and the public today that record-low interest rates will remain in place to bolster moderate economic growth and what is likely a slow improvement in the unemployment rate. Speaking before the House Financial Services Committee, Bernanke reiterated his non-specific timetable for a possible resumption of rate increases on the key federal funds rate – the overnight interbank borrowing rate – which has been at 0-.25 since December 2008. He also conceded that some may question the Fed’s use of emergency authority in propping up the financial markets during the crisis, and welcomed a review of the central bank’s “management” of that authority.

Bernanke: Fed’s Authority is Best Suited for Oversight

In an 11-page defense of its authority, Federal Reserve Chairman Ben Bernanke today relayed to key Senators his reasoning for keeping the Fed’s current regulatory power intact, particularly because of “its understanding of the emerging strains on financial firms.” Moreover, Bernanke said the Fed has gained a firmer grip on the “possible implications” of those strains on the financial markets and the broader economy.

Bernanke: Don’t Blame Fed Policy for Housing Bubble

Don’t blame monetary policy for creating the housing bubble that erupted into the worst financial crisis since the Great Depression, said Federal Reserve Chairman Ben Bernanke in prepared remarks released today. The debate will likely persist, Bernank conceded. But he said there is “no significant relationship” between the Fed’s monetary policies – primarily keeping interest rates at historic lows – and the rapid rise in housing prices.

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