Fed's Bernanke predicts further mortgage turmoil
Business Law
More delinquencies and foreclosures can be expected in the subprime, adjustable-rate mortgage market as borrowers face interest-rate resets, Federal Reserve Chairman Ben Bernanke said Thursday.
In testimony to the House Financial Services Committee, Bernanke also said the market for those mortgages has "adjusted sharply," and that markets "do tend to self-correct."
He outlined steps the Fed is taking to help reduce the risk of foreclosure and stressed the need to beef up underwriting practices.
Just two days after the Fed lowered the federal funds rate by 50 basis points, Bernanke also said the central bank stands ready to foster price stability and sustainable economic growth.
"Recent developments in financial markets have increased the uncertainty surrounding the economic outlook," Bernanke said. "The [Federal Open Market] Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth," he said.
Bernanke said the recent surprise half-percentage point rate cut was designed to forestall potential effects of tighter credit conditions on the broader economy.
"We took that action to try to get out ahead of the situation," Bernanke said.
Bernanke said the central bank's economists would constantly review their internal forecast.
"There is quite a bit of uncertainty, so we're going to have to continue to monitor how the financial markets evolve and how their effects on the economy evolve and try to keep reassessing our outlook and adjusting policy to meet" the Fed's twin goals of price stability and low unemployment.
Still, he said, the global financial system is "in a relatively strong position" to work through the recent credit and market turbulence.
Related listings
-
Investors await Fed decision on rate cut
Business Law 09/18/2007Federal Reserve policymakers opened a long-awaited meeting on interest rates Tuesday amid expectations of a move to revive a sputtering economy, but with some arguing against a return to easy-money conditions blamed for the problems.The Federal Open ...
-
FCC Adopts Three-year “Dual Carriage” Requirement
Business Law 09/17/2007The FCC last night, after a daylong struggle to reach consensus, took several actions of significance to cable operators and programmers. First, the FCC adopted rules that it characterized as necessary to ensure that cable subscribers with anal...
-
EU court rejects Akzo confidentiality complaint
Business Law 09/16/2007[##_1L|1072399082.jpg|width="130" height="132" alt=""|_##]The European Union's second highest court on Monday dismissed Akzo Nobel's complaint against the European Commission over seized documents the firm claimed were covered by lawyer-client confid...
Is Now the Time to Really Call a Special Education Lawyer?
IDEA, FAPE, CHILD FIND and IEPs: The Individuals with Disabilities Education Act (IDEA) guarantees all children with disabilities to a free appropriate public education (FAPE). FAPE starts with a school’s responsibility to identify that a child has a disability (Child Find) and create an Individualized Education Program (IEP) to suit the needs of the child.
Forte Law Group is one of only a very few law firms within the state of Connecticut that is dedicated to exclusively representing families and children with special needs.
Parents need to be persistent, dedicated and above all else aware of the many services and accommodations that their child is entitled to under the law. As early as this point within your child’s special education, many parents will often find themselves in the situation asking, “is now the time to really call a special education lawyer?” Here are a few things to consider when asking yourself that question.