“It
is not the responsibility of the Federal Reserve – nor would it be appropriate
– to protect lenders and investors from the consequences of their financial
decisions,” said Fed chief Ben Bernanke. “But developments in financial markets
can have broad economic effects felt by many outside the markets, and the
Federal Reserve must take those effects into account when determining policy.”
The PCI Suppliers’ Index was
pressured by the downturn in equities, and lost 20.47 points, or 1.69 percent,
to close at 1187.97. A quick look at net changes in index components reveals
the volatility that has been the nature of the stock market in the last month
and a half. When the dust settled, declining issues edged past advancing issues
at an 18-to-16 count.