Rates will stay unchanged for now. May have to wait until the end of 2007 for any changes in the rates to take place.
Why worry about housing, nearly 90% of the talking heads said there is no problem in housing. Many even said dont worry about the sub prime problems either. They talked about a bottom in housing about 3 months ago.....All is well, right....
I won't belabor the point except for this one last time. Aside from "talking tough on inflation"... ...ask yourself one question: If you were the chairman or another member of the federal reserve, would you want to be blamed for a recession that housing, mortgage, and general consumer lending crises could very possibly create soon? Even if you think rate cuts won't avoid these problems, at least the blame wouldn't be placed at your feet if you loosen monetary policy, rather than tighten it. C'mon. Be realistic. Unless inflation rises to 6% or greater, and becomes the more predominant threat to the economy, the expedient choice is sooo very easy. It's bubble-licious!
Fed will eventually cut the rate but not yet,there has not been enough pain inflicted into the overall system yet. Tomorrow if you want to know when he is lying,watch for moving lips!
I'm not sure if you thought that my post implied that I think there is no cause for concern in housing, I certainly understand the severity and the possibilities. I'm just not so sure that Bernanke considers it his problem other than it's effect on inflation.
I was on my way to the gym this morning and a chopper flew over...I figured it was Steve Forbes as his office is around the corner, but then $100 bills came pouring in from the sky...lo and behold, it was Ben on his way to D.C.!
What time is Bernanke speaking? I thought it was 9:30 EST, but I just heard Rick Santelli say 10:30 EST P.S. Apparently it is 9:30 EST http://jec.senate.gov/Documents/Releases/pressreleaseonhearing22mar2007.pdf