Fed Chairman Bernanke Offers Congress Assurances On Mortgage Crisis

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WASHINGTON -- Federal Reserve Chairman Ben Bernanke told Congress Thursday that the credit crisis has created "significant market stress" and offered fresh assurances that regulators would take steps to curb fallout related to the mortgage mess.

Bernanke made the statement in testimony prepared for a hearing Thursday before the House Financial Services Committee. It came just two days after the Federal Reserve sliced a key interest rate by a bold half-percentage point to prevent the weight of housing and credit problems to sink the economy. It was the first time in more than four years the Fed cut this rate.

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Fed Chairman Bernanke Offers Congress Assurances On Mortgage Crisis

"Global financial losses have far exceeded even the most pessimistic estimates of the credit losses on these loans," the Fed chairman said. The situation, he acknowledged, "has cr...

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