Federal Reserve Chairman Ben Bernanke threw his support behind quick and temporary tax breaks, combined with the possibility of "substantive" rate cuts, in testimony before Congress. But he did little to reassure Wall Street the central bank has the wherewithal to steer the U.S. economy out of a possible recession.
One problem Bernanke may not be able to overcome: He lacks the swagger and devout following of his predecessor, Alan Greenspan. Combined with worse-than-expected earnings and economic data, the markets are having a tough time taking Bernanke at his word.
"He doesn't have the street cred yet," said David Wyss, chief economist of Standard & Poor's, which like BusinessWeek is owned by The McGraw-Hill Companies (MHP). "Bernanke is still saying he thinks the U.S. will escape recession; most people on the Street think we are already in one. Maybe nobody's sure Bernanke is wrong, but the markets think he is." - BWeek
The BusinessWeek Action figure is a knee slapper.
