Bernanke: Fed is prepared for crisis

Posted on January 6, 2007
Filed Under Economic/Business news, Macroeconomics |

Chicago Tribune: Federal Reserve Board Chairman Ben Bernanke, speaking in Chicago on Friday, said the Fed is prepared to handle the next financial crisis.

“Yogi Berra reminded us that prediction is very hard, especially about the future,” Bernanke told a convention of economists and finance experts. “In that spirit, the Federal Reserve continues to work actively to prepare for the possibility of financial stress.”

Bernanke did not specify any looming disasters. Late last year, global financial markets were rattled briefly when the Thai government placed restrictions on foreign investment in the country.

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Numerous financial analysts, in their new year forecasts, cited the possibility of a blow-up at one or more of the proliferating and largely unsupervised hedge funds, which are private investment pools.