WASHINGTON — Federal Reserve Board vice chairman Donald Kohn yesterdaysaid the central bank is “acutely aware” of challenges facing financial markets and the U.S. economy, in prepared testimony for the Senate Banking Committee.

Fed supervisors have focused “intensely” on the mortgage market’s problems and are taking “appropriate action,” Kohn said. He said credit quality for other types of consumer loans has remained “satisfactory” so far.

— Market News International

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