The stock market dips from its best levels, but is still holding on to a solid gain of nearly 2%.
Fed Chairman Bernanke has finished his prepared remarks, and is currently participating in a question and answer session before the House Budget Committee.
Although Bernanke feels the recent efforts by the government will help restore the financial system, he noted the stabilization of the financial system will not quickly eliminate the economic challenges. However, he said the economic recovery will depend greatly on the pace at which financial and credit markets return to more-normal functioning.
Bernanke said consideration of a fiscal stimulus package by Congress is appropriate given the likelihood of a weak economy for several quarters. He feels that a fiscal package should be targeted to boost overall spending and economic activity, aimed at improving credit for consumers, home buyers, business and other buyers and limit long term effects on the government's budget deficit.