Washington - Federal Reserve chief Ben Bernanke Friday was optimistic about the market's responses to a series of crisis measures undertaken by the central bank to stem the financial crisis.

"So far, we have generally been encouraged by the market responses, including the decline in mortgage interest rates," Bernanke said in speech to community bankers in Phoenix, Arizona.

He also noted that actions to unfreeze commercial paper availability has "helped American businesses finance their payrolls and other operational obligations."

"Our actions to stabilize the money market mutual fund industry ... have also shown some success," he said. "The sharp withdrawals frin funds in September on balance have given way to modest inflows."

On Wednesday, the Fed, in one of its most aggressive efforts yet to keep the country's financial sector afloat, announced it would buy up more than 1 trillion dollars in government bonds and mortgage- backed securities.

The move, which surprised most analysts, dramatically expanded the Federal Reserve's balance sheet to about 3 trillion dollars in an attempt to revive bank lending and end the world's worst financial crisis since the Great Depression. (dpa)