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Fed chief's clues on crisis battle
Bill Condie, Evening Standard22.08.08
Federal Reserve chairman Ben Bernanke is today expected to give clues about how he plans to tackle the credit crisis when he addresses central bankers in Jackson Hole, Wyoming.
This time last year, Bernanke told the annual symposium that the Fed would take steps to shield the economy from the US housing collapse, but would not bail out investors.
Since then, it has promised billions of dollars in emergency credit and has pledged to bail out mortgage giants Freddie Mac and Fannie Mae.
The Fed granted them the right to borrow money from the central bank at its discount window for short-term liquidity.
Congress recently gave Treasury temporary emergency powers to shore up capital at the two companies.
The Fed held interest rates at 2% at its 5 August meeting on concerns over inflation, and despite soaring home repossessions.
Top policymakers from around the world are attending the meeting.
