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Bernanke: Cyprus crisis not a major risk to US

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(Globalpost/GlobalPost)

US central bank chief Ben Bernanke said Wednesday that the Federal Reserve was monitoring the Cyprus crisis but that it was not so far seen as a danger for the United States.

"At this point we are not seeing a major risk to the US financial system or the US economy" from Cyprus, he told a press conference.

"There are a lot of uncertainties and difficulties" for Cyprus, he said, after the 10 billion euro ($13 billion) EU-IMF bailout of the island country was left hanging after the parliament rejected a heavy tax on bank deposits that was a key part of the plan.

However, the Fed chairman added, "I don't think the impact has been enormous" on markets overall, pointing to the rebound Wednesday in European markets.

pmh/vs

http://www.globalpost.com/dispatch/news/afp/130320/bernanke-cyprus-crisis-not-major-risk-us