Bernanke Letter to Schumer

This afternoon's rally is being attributed in part to a letter from Fed Chairman Bernanke to Senator Chuck Schumer dated Monday, July 27th.  For those interested in reading the entire letter they can click the following link (click here for letter).  The excerpts which have gotten investors the most excited include:

"FOMC has stated that it is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets."

"I share your concern about the potential impact of scheduled payment resets on homeowners with variable-rate subprime mortgages."

We would note, however, that while these comments are reassuring, the letter contains no real new news or policy, and is only a rehash of prior comments the Fed has made.