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Risks to growth and increased inflation risk |
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Wednesday, 16 July 2008 |
The chairman of the U.S. Central Bank Ben Bernanke explained that the Federal Reserve has no idea about the direction of movement in interest rates in the U.S., indicating the risks associated both with growing inflation, and with economic growth.
According to the specialist major priority of the institution is currently supporting the financial markets to restore their normal functioning.
In its regular six-month bank statement to the committee in the American Senate Bernanke said that there is "considerable risk of deterioration in the outlook for the economic growth" and that there is increased risk to "intensify the inflation expectations, transmit Bloomberg.
In his words, today's Bernanke said virtually out of it before the month, when in their explanations after the decision on the level of interest rates indicate that the risks of a deterioration of the economy were "very reduced" over the past weeks. Concerns of the Head of the Fed are related to the problems which came mortgage lenders Freddie Mac and Fannie Mae in the last week.
"The heads of monetary policy need careful assessment of incoming information concerning the outlook for both growth and inflation," Bernanke said and pointed out the high prices of resources, decrease access to credit and deepening crisis in the housing sector as the main threats are the economy.
Today's statement Bernanke is his first comment on monetary policy since 25 June Fed decided not to change the interest rate and left him at 2 percent.
During the speech of Bernanke dollar went down again, reaching a record bottom registered against the euro in early today at 1,6038 EUR/USD. Cross of two currencies reach 1,6020 EUR/USD during the speech of the specialist, then green money stopped their decline and 17:20 hours reached 1,5970 EUR/USD. |
Money 
