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Federal Reserve Chairman Ben Bernanke said on Tuesday that fiscal stimulus alone would not be enough -- and further steps to backstop banks may be needed.
In his first policy speech since early December, Bernanke said that the stimulus package could provide a "significant boost" to the economy, but added the government may need to inject more capital into banks.
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Bernanke went on to say the government should consider buying troubled assets, providing asset guarantees or setting up a so-called bad bank to take over assets in exchange for cash and equity.
Already, the Fed has chopped interest rates from 5.25 percent since September 2007 and has opened a range of lending facilities to stabilize markets and stimulate growth. Bernanke said the Fed would likely keep the benchmark federal funds rate low for an extensive period to combat the crisis -- but emphasized that alone would probably not be enough to stabilize banks.
And that leads to our Fast Money Reader Poll. Do you approve of the way Ben Bernanke and the Fed are handling the financial crisis?
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CNBC.com with wires
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