Fed Chairman Ben Bernanke this morning, shortly before being nominated for another term by the Senate Banking Committee on a vote of 16 to 7 in favor, rebuffed worries over an asset bubble globally along the lines suggested by NYU bad-boy economist Nouriel Roubini.
Pressed by Committee chairman Chris Dodd on the matter of the carry trade, the cheap dollar being used to buy higher-returning assets, Bernanke responded that it’s only a problem for the U.S. if you think the economy is going down again, which is not the Fed’s view. As for the rest of the world, they’ve got their own resources to combat asset bubbles, it’s not the Fed’s, or the U.S.’s problem.
The Dow Jones Industrial Average has slipped 87 points to 10,353.68 just after Bernanke’s nomination.
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