Despite the economic problems facing the nation, the country must also address longer-term issues, especially oversight and improving risk detection and management, Federal Reserve Board chairman Ben S. Bernanke said yesterday.
“The world today faces both short-term and long-term challenges. In the near term, the highest priority is to promote a global economic recovery,” Bernanke told the London School of Economics, according to a prepared text of his speech released by the Fed. “The Federal Reserve retains powerful policy tools and will use them aggressively to help achieve this objective. Fiscal policy can stimulate economic activity, but a sustained recovery will also require a comprehensive plan to stabilize the financial system and restore normal flows of credit.”
While the global economy will recover, the timing and strength of that recovery “are highly uncertain,” Bernanke said, adding: “Government policy responses around the world will be critical determinants of the speed and vigor of the recovery.”
