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Wednesday, June 4, 2008

More Rate Cuts Unlikely This Year

From Realtor Magazine Online, Daily Real Estate News June 4, 2008

Federal Reserve Chairman Ben Bernanke says it’s unlike the Fed will cut interest rates any further this year. Bernanke, who spoke Tuesday via satellite to an international monetary conference in Spain, said inflation is the bigger concern at the moment.

The Fed's aggressive rate-cutting campaign has contributed to a lower value of the U.S. dollar. That, in turn, has contributed to increases in the price of imported goods and in consumer prices.

"Households continue to face significant headwinds, including falling house prices, a softer job market, tighter credit, and higher energy prices," Bernanke said.

Source: The Associated Press, Jeannine Aversa (06/03/2008)

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