My concern is that, as you mentioned, Senator, the Fed's credibility depends on the market's perception that we are independent in making monetary policy decisions and we will not be influenced by short-term political considerations.
Bernanke emphasizes the importance of the Fed's independence from political influence.
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The economy needed help from Congress--if not from additional spending (on roads and bridges for example), then at least in areas such as retraining unemployed workers.
Banks are not going to lend out the reserves at a rate lower than they can earn at the Fed.
It would be very concerning for financial markets and, I think, for the general public if the United States didn't pay its bills.
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