INSTANT VIEW-6: Fed's Bernanke: economy resilient but strains

NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday the U.S. economy has been resilient in the face of credit market strains but it faces risks on both the growth and inflation fronts.

"Financial market volatility and strains have persisted," Bernanke said in testimony prepared for delivery to the congressional Joint Economic Committee. "In addition, further sharp increases in crude oil prices have put renewed upward pressure on inflation and may impose further restraint on economic activity."

COMMENTS:

LINCOLN ANDERSON, MANAGING DIRECTOR AND CHIEF INVESTMENT

OFFICER AT LPL FINANCIAL SERVICES IN BOSTON:

"I think Bernanke's pretty much a straight shooter. It's a pretty balanced assessment. I think there's a good deal of concern. and it is fairly indiscriminate. I'm not seeing a big spreading of this problem thought the wider market. Looking through his testimony, it is pretty balanced. I think its 50-50 that they cut again."

AXEL MERK, PORTFOLIO MANAGER, MERK HARD CURRENCY FUND, PALO

ALTO, CALIFORNIA:

"The Fed is trying to be relevant. They know they're in a corner because there are still lingering inflation pressures but the economy is weakening, so they want to get their 25 basis point cut across. They are actually trying to prepare the market for a cut at the next meeting. It's impact on the dollar? Pretty hopeless."

DEAN JUNKANS, CHIEF INVESTMENT OFFICER, WELLS FARGO PRIVATE

BANK, MINNEAPOLIS:

"It's almost like he's backpedaling a little bit from the last Fed statement, saying maybe growth won't be that strong after all. The market's are pricing in a two-thirds chance of a December rate cut. He seems to have opened up the window to that possibility with his comments."

BRIAN TAYLOR, HEAD OF FOREX, HEAD OF FOREIGN EXCHANGE

TRADING, MANUFACTURERS AND TRADERS BANK, BUFFALO, NEW YORK

"I think that this is this the first time that Bernanke has said that the housing slowdown will begin to affect the U.S. economy; previously that had only been voiced in Fed statements."

"It seems as though the Fed is more concerned abut the credit crunch than on inflation."