Federal Reserve Board of Governors Chairman Ben Bernanke Delivers Remarks at the World Affairs Council of Greater Richmond's Virginia Global Ambassador Award Luncheon

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Federal Reserve Board of Governors Chairman Ben Bernanke Delivers Remarks at the World Affairs Council of Greater Richmond's Virginia Global Ambassador Award Luncheon

CHAIRMAN BERNANKE DELIVERS REMARKS AT THE WORLD AFFAIRS COUNCIL OF GREATER RICHMOND'S VIRGINIA GLOBAL AMBASSADOR AWARD LUNCHEON, RICHMOND, VIRGINIA, AS RELEASED BY THE FEDERAL RESERVE

APRIL 10, 2008

SPEAKER: FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS CHAIRMAN BEN BERNANKE

[*] BERNANKE: In recent months, the Federal Reserve has been intensely focused on the continuing strains in financial markets. Healthy, well-functioning financial markets are essential to sustainable growth. In particular, much experience shows that economies cannot perform at their full potential when financial conditions are such as to restrict the supply of credit to sound borrowers. We are addressing these financial strains and their potential economic consequences with a number of tools, including the provision of extra liquidity to the system and reductions in our target for the federal funds rate.

Even as we have worked to resolve the current crisis, however, the Federal Reserve has also been part of a national and international effort to draw at least some preliminary conclusions about the sources of the current turmoil as well as the implications for public policy. In...

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