Financial Markets' Problems Easing, Bernanke Says

Washington, DC, May 13, 2008--Federal Reserve Chairman Ben Bernanke said Tuesday that problems in financial markets have eased somewhat, but cautioned that the situation isn't anywhere near normal.

The Fed has taken a number of unconventional steps to help banks and big investment firms overcome problems.

Bernanke said those efforts appear to be paying off and "have contributed to some improvement in financing markets."

Bernanke noted some improvements in the markets for certain mortgage-backed securities.

In addition, he said, the Fed's unusual decision in March to let investment firms go to the Fed for emergency loans "seems to have bolstered confidence."

"These are welcome signs, of course, but at this stage conditions in financial markets are still far from normal," he said.

Bernanke did not talk about the Fed's next move on interest rates or the broader state of the U.S. economy.