The President of the U.S. central bank, Ben Bernanke, faced open hostility from lawmakers yesterday in Congress. He was strafed by the way they have handled the financial crisis, a question that reflected public frustration with the Federal Reserve’s role in reshaping the banking system. Every trading for dummies online trader knows that the fed and its interest rate policy sets the tone for overall investment in the stock market, in terms of the markets ability to rally or fall.
Leaving aside the respectful tone that is usually reserved for presidents of the Fed, the members of the Committee on Oversight and Government Reform of the House Bernanke repeatedly interrupted while combing the central bank’s internal email obtained by the committee and projected on screen in the courtroom.
Lawmakers focused their artillery on the Fed’s involvement in pressing the Bank of America Corp. to complete its acquisition of Merrill Lynch at the end of last year. Lawmakers from both major parties, the Democrats, the situation, and Republican, asked Bernanke about the threats that he would have done to the President Director of Bank of America, Kenneth Lewis of forcing the resignation of the executive. They accused him of inconsistencies in their statements and not sharing information with other agencies. In a moment, a deputy asked Bernanke if he was lying.