Federal Reserve Chairman Ben S. Bernanke said rising wages would probably spur household spending in the next few quarters, even as weak job gains dragged down consumer confidence.
Separately, Treasury Secretary Timothy F. Geithner said that the government would press ahead with its overhaul of financial regulation under a new law intended to strengthen supervision and prevent future crises.
Mr. Geithner, who will lead a new committee of senior officials charged with guarding against systemic risks, said regulators would move swiftly to set new rules and provide clarity on their effect. The goal is to avoid the “glacial pace” of most oversight changes and cut through layers of ineffective past efforts, he said.
Investors and the public have been closely watching signals about the economy and the Fed’s possible policy moves to address problems.
Full Story: Bernanke Says Rising Wages Will Lift Spending – NYTimes.com
BERNANKE: ECONOMY STILL IN RECOVERY