U.S. Federal Reserve chairman Ben Bernanke on Monday welcomed the 700-billion-dollar financial rescue legislation proposed by U.S. Congress Sunday.
"I welcome the agreement by the Congress and the administration on a comprehensive plan to stabilize our financial system and support our economy," Bernanke said in a statement, which was made available on the Fed website.
"This legislation should help to restore the flow of credit to households and businesses that is essential for economic growth and job creation, while at the same time affording strong and necessary protections for taxpayers," said the Fed chief.
"I look forward to swift passage of the legislation," he added.
After days of intense debate and discussions, U.S. lawmakers agreed Sunday on details of the Bush Administration's 700-billion-dollar bailout bill, authorizing the government the largest financial intervention since the Great Depression.
The legislation gives the federal government power to purchase these assets from banks and other financial institutions, which, the Bush administration hopes, will help free them to resume lending to businesses and consumers.
Under the plan, the government could get 250 billion dollars immediately, 100 billion dollars more if the president certified it was necessary, and the last 350 billion dollars with a separate certification and subject to a congressional resolution of disapproval.
The economic intervention bill aims to shore up the U.S. economy after the bursting of U.S. housing bubble ravaged the global banking system and dried up credit.
Source: Xinhua
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