The Dilemma Of Bernanke

@efreddy (250)
Belgium
March 30, 2007 5:28pm CST
Bernanke has a dilemma : 1)Intrest rates in the USA must go down because the economic growth in the USA is slowing,industrial goods,housemarkets,mortgaherates problems. 2) Intrest rates in the USA must go up because core inflation are above 2.5% yet since january 2006. Bernanke is solving this dilemma for the moment by doing nothing and think that's the best option for now,maybe he's wright about it but this isn't what the expections are by the chairman of the FED.
1 response
imnutz
@imnutz (288)
• United States
30 Mar 07
I think he will hold the line 1 more time then drop rates 1/4 point. I don't see rates dropping too much in the near term as GDP is still strong. Unless there is a sudden unexpected turn of events I think we are in a flat period.