Fed: Subprime Crisis Contained

The nation's central banker told elected officials on Wednesday that problems in the subprime mortgage market are "contained" and likely will not spill over to the overall economy.Testifying before a joint committee of Congress, Federal Reserve chairman Ben Bernanke cautioned, however, that the subprime meltdown does pose a risk, noting, "We will be watching it carefully." He added, "The ongoing tightening of lending standards, although an appropriate response, will reduce somewhat the effective demand for housing, and foreclosed properties will add to the inventory of unsold homes."