Business

Bernanke chatting
by Claudia Sonea

Live from his office Federal Reserve Chairman Ben Bernanke presents at a monetary conference in Spain his worries about inflation. Although many analysts made a mockery of his speech and his warnings, he touched some very important issues that US is facing today: inflation, housing slump, credit crisis, extraordinary high oil prices and a weakened. After in September started an aggressive campaign of cutting rates, Bernanke stated the Fed will probably leave them where they are due to the threat that inflation poses. The last cut was of 2 percent and took place in April. Many analysts are questioning whether at the Fed’s meeting in June 24-25 there will be a rise or another cut of rates or if they will leave rates unchanged. As Bernanke laid the stress on inflation and its risks, there is a high chance to raise rates, especially to stop the impact it had on the dollar, oil prices and consumer prices. Let us see what is happening currently on the US market: the oil prices reached a record height of $135.09 a barrel, the consumer price increased at a 3 percent annual rate, many businesses and banks are facing bankruptcy. The Wall Street is still wrestling with shares prices that won’t stop sliding downwards. Bernanke doesn’t see the week dollar as being guilty for the increase of oil price and think is more related to the demand and offer and he confesses his expectation for a better situation during the second half of the year. The acknowledgement of the entire is not sufficient to solve things and lately apparently Fed’s attitude is more of discussing than working towards a solution. Hopefully, there will be better news after June 25, thus don’t go away, interesting things are bound to come up.

related story: http://news.yahoo.com/s/ap/20080603/ap_on_bi_ge/bernanke_economy;_ylt=AkSlJPR5A8bGj7a7a2G_VwOs0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>


Edited by: Maria Zitnanska

Labels: Business, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

posted by Blog TechSource @ 1:01 AM