Democracy Now: Bernanke: U.S. Was Aware of Libor Manipulation; Fed Could Tackle Unemployment

Appearing before the Senate Banking Committee, Federal Reserve Chair Ben Bernanke acknowledged U.S. officials were aware of the rate manipulation as early as four years ago but were powerless to take action beyond alerting British officials. Bernanke said the Libor scandal has caused major damage and showed the international rate exchange is “structurally flawed.” Addressing the sluggish pace of U.S. job growth, Bernanke also said the Fed is prepared to take new action to address high unemployment.

Ben Bernanke: “Reflecting its concerns about the slow pace of progress in reducing unemployment and the downside risks to the economic outlook, the committee made clear at its June meeting that it is prepared to take further action, as appropriate, to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”

~ by wheresthemic on July 18, 2012.