Skip to comments.Bernanke: Economy Faces Growth, Inflation Risks
Posted on 11/08/2007 7:07:58 AM PST by Lazamataz
Federal Reserve Chairman Ben Bernanke said on Thursday the U.S. economy has been resilient in the face of credit market strains but it faces risks on both the growth and inflation fronts.
Mary Altaffer / AP Federal Reserve Chairman Ben Bernanke.
"Financial market volatility and strains have persisted," Bernanke said in testimony prepared for delivery to the congressional Joint Economic Committee. "In addition, further sharp increases in crude oil prices have put renewed upward pressure on inflation and may impose further restraint on economic activity."
Bernanke said that when Fed policy-makers met on Oct. 30-31, they saw both downside risks to economic growth and "important upside risks" to inflation, citing oil and other commodity price increases and a drop in the dollar's value.
He is now agreeing with ME. Inflation is on the horizon and an economic slowdown in the next 1-1.5 years is inevitable.
I just hope we don’t get the problems until after the Presidential election next year.
A person could program a computer to say the same thing.
they will up the rate that they just lowered
It’s President Weakdollar’s mess. He should have to deal with any downturn, though I doubt he knows how.
Ignore the jargon. They are going to keep lowering rates.
You mean the guy that created this mess? He's out hawking books to help the 'Rats take the white house next year.
Lining us up for a rate increase?
We are at 3.9% growth last Qtr. An extremely good growth range to be at.
The economy will not fall into recession....However, we will be told that it is, in one (regardless of facts) by the MSM all through 08 -
Get your facts straight. It’s Greenspan’s mess. He’s the one who allowed the subprime mess to start AND continue, under both Clinton and Bush.
Bernanke is just the next idiot in line.
You believe government statistics ?
Liars and statistics, you know. And that’s a bipartisan statement - Carter was the first to start revising the way these are calculated, and every president after kept on.
The difference would be that Greenspan would see it through and allow the credit crunch to take its course. In the long term, it’s the better plan.
Bernanke’s path will just keep pushing it off with lower interest rates, further encouraging borrowing, making the situation worse, decreasing savings and spawning 70s-era stagflation.
It’s not a matter of fault, it’s a matter of ability to fix.
Greenspan’s the legend, not Bernanke. (Besides, wasn’t Bernanke one of the Fed members during the Greenspan era? It’s not like any of them are ignorant, innocent stooges of Wizard Greenspan’s secret concoctions.)
W should have fired Greenspan sometime in 2002 (Greenspan offered to resign in his own roundabout way), so it is still W’s mess.
“Recession , downturn BS talk has been constant for 6 years”
If I recall, it wasn’t until August that the Fed and the Admin. acknowledged the wreck in the housing market
Interesting how the bond market is having absolutely no reaction to his comments about inflation. Perhaps because he doesn’t as have much control over things any longer.
“Inflation only through energy related costs (short term) is what we might see. Will be offset by other variables (productivity).”
Just curious....do you eat?
Have you seen food prices lately?
How does a bowl of warm “productivity” taste?
Inquiring minds want to know.
Greenspan didn't just "allow" the subprime mess he ENCOURAGED it.
You mean the price of Oatmeal finally went up!!!!!!!
Just Damn....you sure you don’t mean menu prices at restaurants is going up??? Ya know you CAN cook meals REAL CHEAP nowadays....sometimes I even stay in and try that myself....I refuse to drink beer at home tho’, so the $3 pitcher days I always look forward to. Now you were saying?
So no need for any further rate cuts, right??
A nation turns its lonely eyes to you......"
Yeah idiots, it's called stagflation and we have been there, done that.
Not until the dow and gold meet, anyways.
Any predictions on when and at what price they will meet ?
They had to know, but the question is what did you do about it?
Don’t know, but I’ve decided to change my sig.
What in Greenspan’s history makes you state that he’d “fix” it ? After admitting he didn’t see the housing bubble until 2006, the guy is an ass of the first water. I used to like him when he was a buddy of Ayn Rand, but he went over to the dark side with Clinton.
No, our rates are too high to begin with - Greenspan foolishly raised them much too high - There is no reason for capital to have an artificially high cost...simply for the sake of it...
What 3.9% growth this last Qtr does show....Is that it is absolute BS and foolishness for the MSM to be touting our economy is in recession (as they have been virtually non-stop for the past 6 months.....and to some extent for the past 6 years - Simply because GWB/GOP is in office).
ABC Radio just reported on this...only the bad stuff. Didn’t say anything about a pickup in the second quarter of next year.
Perhaps a tax cut is in order to keep the economy healthy?
Quit screwing with the interest rate just because less that 1% bit off more than they could chew in the housing market.
Yes, I eat, and eat incredibly well at a cost that is damn cheap considering how I can have food at any abundance of which I desire, that is fresh from places all over the world to boot.
That productivity is what has made us the most prosperous nation ever known to man on this earth....And that allows me to taste plenty of deliciousness...
Food prices are up because of energy costs. Energy costs are up because of foolish wrongheaded, outdated Democrat enviro policies......Not because the fundamentals of our current economy are flawed..... The economy in fact has weathered these inflated energy costs very well over the past 4 years...
3.9% gdp growth. Are you saying we could not go negative because we just had a decent quarter? Historic quarterly changes don’t support that.
3.9% growth is better than "decent". It is a damn fine growth rate - And no, I'm not basing that off of one Qtr. But off of six straight years of economic expansion (apprx 24 straight Qtrs of growth)....Of over 4 straight years of solid job growth, not to mention both historically low interest rates and inflation. Did I leave out wages are up, productivity is up......Reality is there are a great number of economic positives.....The MSM (and some others) simply want to ignore them because it doesn't fit their agendas....Be it politically (for the MSM) or because they are "short" on the market (individuals).
Did everyone see what happened when he made the announcement? I noticed the change when viewing the chart at My.yahoo and said to myself, “There must have been a press release”. I went to the news page there and presto, there were the remarks he made.
Man, what power. You say some squishy tripe and markets react dramatically. Amazing.
The market went from down over 200 to plus territory after his speach. But it is looking like many are feeling like they got a reprieve and are now dumping out fast.
America!, where even the very poorest can get fat. (And I'm not being sarcastic)
LOL..You really should do some of you reading in places where the news reflects reality.
A slowdown does not equal recession, it may be a soft landing.
Also, just curious? Are you aware, that household discretionary spending as increased from 52% to 64% within the last 5 years - (though I agree completely with your tag line, and it is only getting worse on the State and local levels).
Right here on FR is just fine. Some ability to sort the good news from the bad is required. This use of good/bad is the standard where bad news is useless and good is functional news.
The housing market does not make an economy (not even close).
Reality is the American economy just grew at a very solid pace of 3.9%. We are in the six straight year of economic expansion (apprx 24 + straight Qtrs of growth)....Of over 4 straight years of solid job growth, wages are UP, household income is UP, federal income taxes are lower, discretionary spending as increased from 52% to 64% within the last 5 years alone!
Did I leave out productivity is through the roof - Going on 5 or 6 straight years of gains, interest rates are low, inflation is low, the economy as adapted to higher energy costs (needlessly higher) Reality is there are a great number of economic positives.....The MSM (and some others) simply want to ignore them because it doesn't fit their agendas....Be it politically (for the MSM) or because they are "short" on the market (individuals).
No I was not putting down FR. FR is not a financial forum. I was referring to finding financial news in places other than CNBC, and the MSM. Reality is that Inflation is huge when you count Food and energy. Credit is dying up. Credit cards are being maxed out. Mortgages are harder to get. Jobs are on the decline(The government gives enough information in own report to prove that its numbers are false). People don’t know how they can afford gas,heat,and food. Things are not so rosy as some would have you believe.
A very few years ago:
A tank of heating fuel $200.00
A tank of Gas $20.00
A tank of heating fuel $800.00 - $900.00
A tank of Gas- $60.00+
Milk $1.69 Now: $5.79
paid a dollar for a lemon today
used to get half a dozen
keeps going without any wage inflation won’t be any money for hilliary’s trillion dollar million idea plans
Kudlow had a chart today showing that our dollar is no lower than it was 20 or 30 yrs ago...that is’s very cylical in its range....IIRC that is...