The markets found few immediate take aways in the comments of Fed Chairman Ben Bernanke today which largely focused on the current account deficit and the global savings glut. But if you wanted to hear the thoughts of a top central banker on the state of the economy, current market conditions, the credit crunch and interest rate policy, you might take a look at comments from European Central Bank President Jean-Claude Trichet.
Trichet assured markets today that banks are strong enough to weather the subprime storm. He made soothing comments about the accommodative posture of the ECB, and reaffirmed the monetary stance it made clear Sept. 6. Trichet also talked about the quick reaction and smooth functioning of the Eurosystem of Euro zone central banks in dealing with market tumult since early August.
"It is important to remark that credit losses were not significant enough to materially impact the soundness of core financial institutions," Trichet said before a European Parliament committee today. Trichet's message today echoes comments he made this weekend in an exclusive on camera interview with CNBC's Maria Bartiromo.