US central bank chief "encouraged" by market reaction to steps

Washington, March 20, SPA -- Federal Reserve chief Ben
Bernanke today was optimistic about the market's responses
to a series of crisis measures undertaken by the central bank
to stem the financial crisis, according to dpa.

"So far, we have generally been encouraged by the market
responses, including the decline in mortgage interest rates,"
Bernanke said in speech to community bankers in Phoenix, Arizona.

He also noted that actions to unfreeze commercial paper
availability has "helped American businesses finance their payrolls
and other operational obligations."

"Our actions to stabilize the money market mutual fund industry
... have also shown some success," he said. "The sharp withdrawals
frin funds in September on balance have given way to modest inflows."
--SPA