Bernanke: Cyprus crisis not a major risk to US

Bernanke: Cyprus crisis not a major risk to US

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.

People walk past a shop offering sales in Nicosia's Ledra street on March 20, 2013. 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.

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