video transcript

Clearly you're presents a big unknown for the -- and it sounded like Bernanke is keeping a very watchful eyes on Europe. Okay it's. They are clearly. Taking into account the fact that there could be an unexpected. And very damaging crisis that could blow out in Europe. We are. Hopeful that Europe will take additional measures and do all that's necessary. To stabilize the situation and to provide the basis for an ongoing. Stable structure that in which. Banks and sovereigns are both stabilized. In which there's a program for growth and in which. Fiscal arrangements are are are cleared -- much clear. A surprising revelation with that the Fed is considering a program similar to one adopted by the Bank of England. That ties support for banks actually lending by banks to businesses and to consumers one of the conundrum about US economy is that this fight rock bottom interest rates banks appear not to be landing in some think it's because the tight credit. Others think it's because of the terms. That banks are asking the people in any case the fact that bad as Bernanke conceded is thinking about a similar programs. With a bit of a surprise that it press conference. But we're looking for as you know throughout the crisis we've looked for new programs new ways to help the economy. And to Soviet. Type of thing that will be on the list of programs that we look at. One thing is that what they did today is that nothing he defended this extension Operation Twist saying that in spite of some. Ho humming about it in the markets we think that actually gonna have an effect on financial markets and financial conditions. Operation Twist an asset purchases work also through other channels in particular. By acquiring securities. In the market and bringing him onto the Fed's balance sheet. We socially. Induce investors to move into substitute securities so for example. An investor who sells -- treasury security to the Fed. May end up buying a corporate bond instead and so the effect will be to lower corporate bond rates and corporate spreads. The other thing is that -- square emphasis is on labor markets Bernanke made it clear that the determinant of whether the Fed does more with how the job market behaves. But he's gonna do is. Review. All the labor market indicators. Including unemployment including. Participation. And other measures of of labor market activity and try to make a sense try to get a sense of whether or not labor market is improving and sustainable way. It's not a month to month proposition you know it this year already we've seen a few months of very strong job gains -- we saw two months of weaker gains obviously month to month. There's gonna be statistical noise is going to be whether it is and a lot of factors that -- Cause job gains to vary so the question is. Is the improvement. Sustainable is it long lasting that's the kind of thing that will be looking at moral.