In the face of what appears to be a worsening national economy, Ben S. Bernanke, the chairman of the Federal Reserve, is expected to cut interest rates again, the goal being "to get people to borrow and spend more."
Bernanke was quoted in the New York Times today as saying:
'“The outlook for real activity in 2008 has worsened. We stand ready to take substantive additional actions as needed to support growth and to provide adequate insurance against downside risks.”'
Until recently Bernanke has been reluctant to forecast the U.S. economy as anything but vague; yet "disappointing holiday sales figures," a rise in unemployment, and a troubling spike in foreclosures all give evidence to an downturn.
Bernanke still steers clear of the word "recession," however, and seems to remain confident in the Fed's ability to prevent one in the near future.
Fed Chief Signals Further Rate Cut, By Louis Uchitelle and Michael M. Grynbaum, the New York Times
No comments:
Post a Comment