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Fed To Study Impact Of Financial Crisis On US Household Finances



By Maya Jackson Randall, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The Federal Reserve is starting a research project to evaluate the impact of the financial crisis on American households, with Fed Chairman Ben Bernanke seeking robust participation from families around the country.

"It may seem that everything that needs to be known about recent economic changes is already known," Bernanke said in a recent letter to potential survey participants, which the central bank made public Monday. "But, we would benefit from a more detailed understanding of what has happened across the broad range of types of households. For that, we need to look directly at changes for individual households."

The Fed conducted a survey of consumer finances in 2007, before the onset of the current financial crisis. It plans to "soon" begin a statistical study of household finances to provide critical details about how the economic downturn has affected consumers.

For its 2009 Survey of Consumer Finances, the Fed said it will aim to re- interview all of the 4,422 participants in the central bank's 2007 survey.

While the survey is generally undertaken every three years, the Fed has decided that the last two years have been so extraordinary that a new survey is needed sooner than planned.

The survey will be conducted by the National Opinion Research Center, a social science research group at the University of Chicago. Data will be collected from July 25 through Dec. 31.

In his letter, Bernanke urged households to participate.

"I assure you that we give the highest priority to guarding the privacy of the survey participants and the confidentiality of their answers," he wrote. " Participation is voluntary, but I urge you to take part."

-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255, maya.jackson- randall@dowjones.com


  (END) Dow Jones Newswires
  07-27-091115ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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