Bernanke Testifies More Rate Cuts Likely
27 February 2008
Rates were down today after Fed Chair Ben Bernanke testified to Congress that the Fed may continue to lower rates, despite strong inflationary pressure. Rates will improve by at least .375 to the points.
Durable Goods Orders for January were reported today, showing a much steeper decline than had been expected. New Home Sales for January also posted significantly worse than expected Data. Both are good news for rates, and show that the market for housing and big ticket items is very week.
However all of this was overshadowed by Ben Bernanke’s testimony where he restated his concerns about inflation, but showed a willingess to continue to reduce rates inorder to take pressure off the beleaguered housing sector and other weaking aspects of the economy that are now faultering. He will testify to the Senate Banking Committee tomorrow.
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