UPDATE: Libor question right off the bat, and it’s clear that Bernanke was prepped for it. He said that the issue is “troubling” and that Libor is structurally flawed, but it was then complicated because there was no interbank lending going on at the time. He also said that members of the NY Fed informed all the relevant agencies in the US and UK of what was going on. The NY Fed also developed recommendations for suggested changes and communicated them with the Bank of England and the BBA. He also said that the Board of Governors was providing analytic support, and added that there was “rapid followup” by the other agencies such as the CFTC.
Click the image below to open his testimony, and here is the link for the report itself.
We’ll update this post during the testimony if something interesting happens, but the FT’s ace central bank watcher Claire Jones is live-blogging it at Money Supply for those who prefer real-time coverage.