Top Federal Reserve officials on Thursday cited progress in alleviating months of turmoil in financial markets, but said a full return to normalcy was still some time away.
The recent credit woes underscore the need for banks to hold "generous" capital cushions, Federal Reserve Chairman Ben Bernanke said, as he urged banks to actively raise money and prepare for better times that lie ahead.
"I strongly urge financial institutions to remain proactive in their capital-raising efforts," Bernanke said in a speech at the Chicago Fed's 44th annual bank structure conference. This year's theme is "Credit Market Turmoil: Causes, Consequences and Cures."
"Doing so not only helps the broader economy but positions firms to take advantage of new profit opportunities as conditions in the financial markets and the economy improve," he said.
Product Rate APR
3/1ARM *5.375% *5.460%
5/1 ARM *5.500% *5.578%
15 Yr. Fix. *5.625% *5.703%
30 Yr. Fix. *5.750% *5.828%
*Rate is based on 20% down payment
*APR is based on $250,000 loan amount