Bernanke asks congress to do more for the economy

Ben Bernanke, Chairman of the Federal Reserve, testified before the House Financial
Services Committee on monetary policy and the state of the US economy. He stated that
despite rising oil and commodity prices and a mortgage crisis facing the United States,
our economy continues to grow, though at a subdued pace. These issues all require action from the US congress.

Of particular concern to Bernanke is the effect our economy is having on the job market and
housing sector. He stated that while all sectors have seen a decline in job availability, the construction sector has been particularly hard hit. This problem is made worse by
declining housing starts and a slowdown in the purchase of new homes. Currently, the
unemployment rate in the United States has risen to 5 percent.

Bernanke also addressed concerns over the rising cost of oil. He attributes this rise to an
increased demand from developing nations, as many of these economies have seen large
amounts of growth. This has caused both the global demand for oil and its price to rise. In
addition, Bernanke stated that the long term predictions of available oil supplies are
low, which could mean that higher oil prices will continue to plague Americans at the
pump.

The Chairman concluded by stating that he would like to see government do more to deal with our nation's housing crisis and rising rate of foreclosures. While in this last week the federal reserve authorized more lending to assist both Fannie Mae and Freddie Mac, who control trillions of dollars in the US mortgage market, congress has not done nearly enough to control the effects this crisis has on Americans.

Ben Bernanke, Chairman of the Board of Governors of the United States Federal Reserve, Testifies Before House Financial Services Committee About State of the Economy and U.S. Monetary Policy

Federal Reserve Chairman Ben Bernanke testified before members of Congress this afternoon at a House Financial Services Committee hearing regarding monetary policy and the state of the American economy.

The Committee questioned Bernanke about a wide variety of factors that account for the financial successes and failures of our nation. As one of the most important decision makers in US economic policy, Bernanke was most critically interrogated about the fast increasing rate of housing foreclosures facing homeowners unable to pay back “risky” loans they are unable to afford.

In response to such criticisms, Bernanke discussed the need for American consumers to better understand where the money they spend goes. Regarding housing foreclosures and credit debt problems, Bernanke explained the need for American’s purchasing goods and real estate to understand the interest rates they are committing themselves to, as well as the additional fees many purchases are accompanied by.

Also emphasized by Bernanke was his hope that the economic stimulus package recently signed by President Bush would remain temporary. Bernanke discussed his desire to construct a thriving economy, yet at the same time cautioned that the only way for such success to become permanent would be for the American people to learn how to successfully maintain one.