Bernanke: Inflation Risk “Uncomfortably High”
28 March 2007
Current Mortgage Outlook:ﾃつ Lock
Bonds are up this morning on weaker than expected data, and stocks slideﾃつ afterﾃつ Ben Bernanke’sﾃつ testimony today before the Joint Economic Committee.
The Commerceﾃつ Departmentﾃつ released durable goods data for February this morning, reported that orders increased by 2.5%.ﾃつ This was weaker than the expected 3.5% increase.
In his prepared address to the JEC today, Ben Bernanke noted that economic growth has slowed domestically mainly because of the softening housing sector, andﾃつ that the risk of core inflation remains “uncomfortably high”.ﾃつ ﾃつ Yet he added that the economy “appears likely expand at a moderate pace in the coming quarters.”ﾃつ
Regarding the current subprime loan crisis he stated, “At this juncture…the impact of the broader economy and financial markets of the problem in the subprime market seems to be contained…Thus far, the weakness in housing and in some parts of manufacturing does not appear to have spilled over to any significant extent to other sectors of the economy.”ﾃつ
Edited text of Bernanke’s statement.
The Mortgage Bankers Association of America said that its application index held steady this week.
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