but bernan also warned of ritical challenges". specifically, bernan said financial firms fa "significant losse" businesses and nsumers are experiencing difficulty in tting credit, the economic recovery wille "relatively slow," a he expecta gradual recovery in unemployment. bernanke defended the acons tan by the fed during the financial cris, saying they avted an "imminent collapse" of the financial stem. joining us n with more analys, robert mcteer, former prident of the federal reserve bank of daas and currently distinguished fellow athe national center for policy analysis. nice to see yoon the program agn. >> thank you, susie, good to be with you. >> susie: is ben bernanke right about the economic outlook? >> well, i hope so. and probay. i ink there's a go chance we'll get positive g.p. number for the current quarter, primarily, though,ecause of inventory rebounds and thcash for clunrs. i'm not real confident that tha can be sustaid. i think the consumeras real headwinds that hs facing, and if he's going to be doing any saving i

. >> thearkets welcomed today's bernan bernank, but you say pols shouldt matter to investors. what dyou think? >> people fosed onwashington, woied about things, debates and uncertainty, and ey're missing the stock maet. in terms othe fed chrman, he willnherited quite a crisis a year ago, d i thought he handled it very well. so i think thmarket likes stability and we're fine with this reappointment. >> paul: politic is fine with investing? >> yes. people are debating issues that might haveonsequences three, four yea from now. th market dsn't look out that far. >> paul: s months or so. >>efinitely. >> pau what are you seeing in the markets right now? >> broad markes up 53% fr itlow in march. we think it's a seible rally. a ry typical econoc recovery anticipation rally. >> paul: but overdone? >> no when it started we saw stks as 45%elow fair value. we still see the as 10% below ir value. we think this can ntinue. >> pl: other bullish factors? >> corrate bond yields are dropping. that's not talked about ry mu, but one of the best rallies in corporate bonds we'll ever see is underw

bernane hee says there uld be very sma number o chilen aected b vacnes that thearge sdiesight be missg. >> i don't think it'serbly humble toay we ha all t answers,st, shurt dow t research, don'tsk any questions. all the queions have b no means been swered. >> reporter: as for dr. wakeel the controvsy continue i wasn't se wther was going to see a halo pof yr he or hos comin out of yr he. how you fee about the controrsy you ve gerated over this last decade? >> ll, ihink i you mak an observatiowhhhaenges policyr profit, the there is gog to be a reacti. i n't ow whetheraccines cae aism. i kn is legitimate questi thaesee nds to be asked and i'm n g tnglkwao ywa from ter:t lar, nbc news, ne.orepw myot lar:r, nbc news, new yo.r, >>> u can e mor of matt's interview o a special "datin" a dose o controver tonightt 7:00/6:00 centl herennbc. >>> when we me back, wha happs when a skyver takes a ,000 foo pngwithout a rkinparache? you've wanted to quit smoki so manyimes but those daycame and wen d the caretteremaed. but today's a new day. and a few sple steps can make a rl dierence your next qt... th

there are a lotf people in coness, who although they credit bernan for doing evything he could to stop this crisis, are very uneasy abouthis extraordinary use of fed powers about the way he's beein a sense creating money to pump liquidity into the markts to bias sets. a lot ofpeople in coness don't like that. they fear the concentrati of powers in the fd. nd so there's going to b some tough questnssked. >> woodruff: dav, what's your sense how the senate ocess will go? >> i agree with krishna. i think confirmation is almost a certaiy. but mr. bernanke d the fed have become a lightning rod for congrs hall and public hostility towards the bailout of wall street. he did a goo job trying to prent his side of the sto onhe news hour and on60 minutes". buthere are a numberf members of congress who are looking forward to an opptunity to wck him agin, and i'm sure they will. it's important for mr. bnanke that he get through this press with his credility intact. and with so sensethat congress does respect the independence othe fed when it cometo making monetary policy moving iterest rates. my exp