Bernanke announces Transparency Initiatives for the Fed

Federal Reserve Board Chairman Ben Bernanke spoke Wednesday at the National Press Club about the Fed’s lending programs and balance sheet. Bernanke spoke about the tool kit used by the Federal Reserve to battle the economic crisis the country is facing. He said that the tools the Fed had at its disposal were programs that would promote liquidity for both financial institutions and money market mutual funds. He said that transparency of the system was important, for democratic reasons, but also to make sure people working with the market understand the system, to encourage the most effective market activity. With this in mind, the Chairman announced two initiatives that the Federal Reserve would be undertaking, the first of which was establishing a new website to educate and inform the public on relevant financial issues within the federal government. This website would consolidate all of the information previously provided by the Fed into one easily accessible place, and would provide explanations on all of it. Additionally, the Fed is going to review current publication and disclosure policies to ensure the public has access to information they “have a right to know”.

Concerning the President’s economic stimulus plan, Bernanke said that he cannot talk about specific components and apportionments, because those are up to the administration and legislators. He did say, however, that there were two necessary parts to recovery: financial stimulus to get the economy moving, and a stabilization of the financial systems. Several times he emphasized the importance of these two components, saying that the other programs will not work without these two pillars. The efforts to get the economy moving again will also specifically help small business, said Bernanke. He went on to say that the country should maintain a level of inflation that finds a balance between maximum employment and price stability over time. He saw very little risk of “unacceptably high” inflation in the short term.

By Michael Ruhl, University of New Mexico – Talk Radio News Service

Pelosi content with stimulus package

Speaker of the House Nancy Pelosi expresses contentment at the pace at which the Economic Recovery Package was passed. She referred to the vote to pass this bill as "historic".

By Michael Ruhl, University of New Mexico - Talk Radio News Service

Nancy Pelosi: Recovery package is “transformational”

While at a press conference in the Capitol today, Speaker of the House Nancy Pelosi (D-Calif) said that she was very proud of the Economic Recovery Package, calling it “transformational”. Speaker Pelosi stated that all of the votes in Congress are important, but some are historic; She said that this specific vote was historic. Speaker Pelosi stated that she would have liked for the bill to have more Republican support, and would not comment on the number of votes she expects to see for the package in either chamber. When asked if she was worried about future legislative endeavors after the narrow margin by which the bill passed in the Senate, Speaker Pelosi pleaded no contest, simply stating that the bill did pass in the Senate.

By Michael Ruhl, University of New Mexico - Talk Radio News Service

America in a ditch

by Christina Lovato, University of New Mexico-Talk Radio News Service


"Today's numbers underline the need to act, and to act now." said Chairwoman Carolyn Maloney (D-NY) at a Joint Economic Committee hearing today.

Today, the U.S. Department of Labor reported that the unemployment rate has risen from 7.2 to 7.6 percent and according to other figures released, 3.6 million jobs have been lost since the recession began in December 2007, including the nearly 600,000 jobs lost in January only.

Senator Robert P. Casey (D-PA) was particularly alarmed from the minority unemployment statistics expressing that, "As bad as this recession has been overall for all Americans it has had a particularly disproportionate adverse effect on African Americans and Latinos." Since the start of the recession, December, 2007, the unemployment rate for African-Americans has gone from 8.9 to 12.6 percent and for Latino's it has risen from 6.2 to 9.7 percent.

The sectors of education and healthcare have maintained relative stability and there has been a job growth seen in those areas. There was a rise in jobs in education and that area has gained 39,000 jobs and in healthcare there has been a growth of 19,000 jobs. In the past three months the motor vehicle and parts industry has lost 75,000 jobs in the major auto producing states.

Chairwoman Maloney ended her opening statement by discussing the economic recovery package. "Alarm bells are sounding and our economic recovery package must make its way to the President as soon as possible. The current economic crisis requires bold solutions that address the magnitude of our economic woes, and the American Recovery and Reinvestment Plan will do just that." she said.

Economic recovery package has bipartisan backing

According to Senator Charles Schumer (D-N.Y.), the process of drafting the economic recovery package has been a smooth, bipartisan effort.

"We all know there is no longer a debate as to whether there should be a stimulus package, only what's going to be part of it," said Schumer during a press conference with Senator Rober Menendez (D-N.J.). Also in attendance were the Presidents of Laborers International Union of North America (LIUNA) the American Federation of Teachers (AFT).

"There is a broad agreement on both sides of the aisle that a package, a large, broad package is necessary. That's made negotiations very productive,” said Schumer.

The Senator from New York commented that there have not been any attempts by Members of Congress to alter the package by leveraging their influence.

"I haven't heard a single member say 'if this isn't in or that isn't in, I'm not voting for the package'. Usually when you have large, comprehensive packages at this stage in the negotiations that's what you hear," Schumer noted.

Schumer went on to describe the benefits of the package, noting that there are provisions aimed at rebuilding the nation's infrastructure, creating jobs, and providing individual states with fiscal relief.

In addition, Schumer stated that education will be a key aim of the package, made evident by provisions for tax credits to improve college affordability and upgrades for failing schools.

Schumer complimented President Elect Obama's handling of the package, saying that he had provided Congress with a basic outline and leaving the specific details for their discretion. He also mused that this has helped it gain popularity among his colleagues.