Bernanke: Growth hinges on stabilizing markets

Traders work in the crude oil options pit on the floor of the New York Mercantile Exchange, on 23 September 2008, in New York.

Bush administration's $700 billion bailout plan, digs deeper into taxpayer pockets with no dilemma help in the future projection.

24 September 2008
By JULIE HIRSCHFELD DAVIS

Federal Reserve Chairman Ben Bernanke gave Congress a grim assessment of the state of the economy Wednesday, saying that business growth hinges on stabilizing troubled financial markets.

Bernanke, in remarks prepared for the Joint Economic Committee of Congress, said the Fed will "act as needed" to minimize the disruptions to America's business life. His appearance came not long after President Bush said he remained confident that the administration and Congress will reach agreement soon on a "robust" plan to relieve the financial and credit crisis.

Lawmakers have voiced skepticism about the the administration's $700 billion bailout plan, however, and both Bernanke and Treasury Secretary Henry Paulson heard skeptical statements from Senate Banking Committee members when they went to Capitol Hill Tuesday to plea for passage of the plan.