Bernanke speaks....

Fed Chairman Ben Bernanke will be testifing before the Joint Economic Committee on the Economic outlook. Earlier he has testified that “predominant policy concern remains the risk that inflation will fail to moderate as expected.” It would be my guess the Mr Bernanke will restate this today. It all remains in the numbers. If the numbers come out weaker look for rate cuts. Moderate to stronger growth I believe we are in a holding pattern. Overnight crude prices spiked. This is not a good sign as higher crude will translate into higher inflation (or at least higher inflation fears). The U.S. economy is clearly on the edge. I am of the opinion that we will fall to the side of a weaker economy, with inflation on the higher side. Not a good combination.


Good Luck and Good Forex Trading.....