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.
Bernanke asks congress to do more for the economy
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.