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Bernanke's and Paulson's testimonies

Tue, Sep 23 2008, 14:44 GMT
by Marina Schiaffino

FXstreet.com


USAGoing on with all the crisis ambient that has reigned over the markets on the last weeks, two of today's most important events were US Treasury Secretary's Henry M. Paulson, and Fed's Chairman Ben Bernanke testimonies before Sennate Committee. They spoke about the latest developments on the credit crisis and the state of the U.S. financial markets. It indicates a sign of new fiscal policy.

Both of them have followed a very similar discourse. On one hand Paulson said that "over these past days, it has become clear that there is bipartisan consensus for an urgent legislative solution." While Bernanke stated that "action by Congress is urgently required to stabilize the situation andavert what otherwise could be very serious consequences for ourfinancial markets and for our economy."

The plan is meant to cover the large outflow of funds consumers might produce as a consequence of the panic that financial turbulence has created in the population. 

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