By Yali N'Diaye

WASHINGTON (MNI) - The U.S. accounting standard setting body is still collecting comments on its proposal to apply fair value accounting to all financial instruments, and Federal reserve Chairman Ben Bernanke said during his Financial Crisis Inquiry Commission hearing Thursday that it is not the best idea for long-term loans.

That is not to say fair value -- also known as mark-to-market -- should be eliminated, he said.

By Steven K. Beckner

(MNI) - Two Federal Reserve Bank presidents voiced concern about the impact of foreclosures on local communities in their districts Thursday.

Boston Fed President Eric Rosengren said the problem is multifaceted. He said it is not just a foreclosure and REO (real estate owned) problem rooted in the housing bubble requiring mitigation; not just a housing affordability problem, and not just a problem caused by problems in the community such as unemployment, crime and so forth, but a combination of those.

By Yali N'Diaye

WASHINGTON (MNI) - Monetary policy is a "blunt" instrument and for that reason is not as effective as supervision and regulation to improve financial stability, Federal Reserve Chairman Ben Bernanke underlined Thursday.

By Steven K. Beckner

HOUSTON (MNI) - Dallas Federal Reserve Bank President Richard Fisher said Wednesday that the Fed is doing "as much as is prudent" to stimulate the economy and said it is now up to "politicians" to "get it right" on fiscal and regulatory policy.

Fisher, speaking to the press following an address to Houston-area business people and other leaders, said firms will only begin hiring and expanding their business when they become less uncertain about government policy in a variety of areas, including tax rates, health care and financial regulations.

By Steven Beckner

HOUSTON (MNI) - Dallas Federal Reserve Bank President Richard Fisher said Wednesday that he would be reluctant to support an expansion of the Fed's balance sheet unless and until federal fiscal and regulatory policies are made more friendly to economic growth and job creation.

WASHINGTON (MNI) - The following is an excerpt from the speech by Federal Reserve Board Governor Elizabeth Duke Wednesday to open the Feds' summit on neighborhood stabilization:

It is not sufficient, given current economic conditions and the significant needs of our neighborhoods, to do things the way we have always done them. Homeownership, long promoted by federal policy and facilitated by local housing organizations, cannot and should not be the only alternative for REO properties.

WASHINGTON (MNI) - The following is an excerpt from the testimony by the Federal Reserve's General Counsel Scott Alvarez before the Financial Crisis Inquiry Commission Wednesday, discussing the central bank's improvements to its supervisory approach:

By Brai Odion-Esene

WASHINGTON (MNI) - The Federal Reserve Tuesday announced its approval of the application by China's Sovereign Wealth Fund, the China Investment Corporation, to acquire indirectly now up to 10% of voting shares in U.S. banking giant Morgan Stanley.