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Bernanke cools it for Wall Street
08.07.08
New York avoided the carnage on stock markets around the world tonight after the US Federal Reserve said it may extend emergency lending for big Wall Street banks into next year.
The Dow Jones Industrial Average opened 34.4 points higher at 11,266.4 despite heavy losses in London and in Europe after Fed chairman Ben Bernanke eased concerns about financial stability.
Fresh fears about the outlook for banks and broking houses battered by the credit crunch sparked a sell-off on Wall Street yesterday, but Bernanke tonight calmed the mood.
He said the Fed was "monitoring developments in financial markets closely" and was considering extending the emergency lending facility in place for struggling banks beyond the end of the year if conditions do not improve.
