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What Bernanke Didn't Say ( What Do You Say)

By
Real Estate Agent with Simply Vegas

Market Reaction Mixed

April 2, 2008, 12:51PM EST

by Peter Coy
businessweek.com

 

Later in the hearing, Sen. Edward Kennedy, D-Mass., raised his voice, repeatedly asking Bernanke to give his views on fiscal measures that could be taken by Congress and the Bush Administration. Bernanke declined to do so.

Market reaction to Bernanke's testimony was mixed. Stocks initially dipped, then rose slightly. Economists at Bear Stearns noted Bernanke "downplayed risks [of] inflation," which they interpreted as "leaving the door open to a further rate cut on Apr. 30." They speculated that it would be only a quarter-percentage-point cut, however.

Bernanke said he expects more economic growth in the second half of this year and into 2009, helped by the government's $168 billion stimulus package of tax rebates for people and tax breaks for businesses as well as the Fed's aggressive rate reductions. "Much necessary economic and financial adjustment has already taken place," he said, and monetary and fiscal policies are in place "that should support a return to growth in the second half of this year and next year."

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Comments (2)

Pete Rondello Sr
Coldwell Banker Mulleady Inc. - Boulder Junction, WI
Kinda miss Greenspan and the good old days. The short-term rate cuts don't seem to be helping much - car sales are still soft even with the low short-term rates, and housing ... well, as we know, there's huge room for improvement there. I think it's more about attitude and less about rates and the so-called stimulus. George Bush's "Booster Shot" isn't what we need. the problem is much greater.
Apr 03, 2008 07:42 AM
Makea Turner
Simply Vegas - Las Vegas, NV
The problem is we don't have sound money is this country and the federal reserve takes it upon them selves to regulate our markets. My personal opinion is Greenspan was a big part of this problem to begin with 
Apr 03, 2008 07:59 AM