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Fed Chairman Bernanke Suggests Economic Slowdown Unavoidable, Paulson Speaking On Capital Purchase Program
Monday, 20 October 2008 15:40:40 GMT  |  Terri Belkas, Currency Strategist
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US stock markets have pulled back from their 10:00 ET highs following comments from Fed Chairman Ben Bernanke, which did not reveal any new information but focused on the weak status of the markets and economy. Mr. Bernanke said that with the latest credit stabilization efforts being unlikely to quickly spur an economic rebound, consideration of a new fiscal stimulus plan was "appropriate." He also downplayed the potential impact of infrastructure projects to boost growth, as they can take years to get started, but played up the need to stop foreclosures and increase the availability of mortgage credit. Overall, it is clear that downside risks to growth remain and a recession confirmed by US GDP figures is likely. 

US Treasury Secretary Henry Paulson is currently discussing details of their Capital Purchase Program, and has said that there is broad interest by financial institutions who want to take part in effort.

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