Dollar Hits New Low
Posted: Thu Feb 28, 2008 11:09 am
DOUG
Bush's pathetic policies have hurt our country in so many ways...
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The dollar fell to a fresh record low against the euro on Wednesday as Ben Bernanke signalled that the Federal Reserve is likely to cut interest rates again next month.
The single European currency breached $1.51 after the Fed chairman made it clear that the US central bank remained firmly focused on the risks to growth, in spite of some increase in inflation risk following a run of bad price reports.
The Fed “will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks”, Mr Bernanke told Congress.
The Fed has cut rates five times since last summer, taking rates down from 5.25 per cent at the beginning of August to the current level of 3 per cent.
However, Mr Bernanke said rate cuts to date had only had limited effect in easing overall financial conditions, in particular in the housing market.
“It has been very difficult to lower long-term mortgage rates through Fed action,” he said, adding “what we have done has been mostly just to offset the tightening of credit” that would otherwise have taken place.
See here.
Bush's pathetic policies have hurt our country in so many ways...
====================
The dollar fell to a fresh record low against the euro on Wednesday as Ben Bernanke signalled that the Federal Reserve is likely to cut interest rates again next month.
The single European currency breached $1.51 after the Fed chairman made it clear that the US central bank remained firmly focused on the risks to growth, in spite of some increase in inflation risk following a run of bad price reports.
The Fed “will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks”, Mr Bernanke told Congress.
The Fed has cut rates five times since last summer, taking rates down from 5.25 per cent at the beginning of August to the current level of 3 per cent.
However, Mr Bernanke said rate cuts to date had only had limited effect in easing overall financial conditions, in particular in the housing market.
“It has been very difficult to lower long-term mortgage rates through Fed action,” he said, adding “what we have done has been mostly just to offset the tightening of credit” that would otherwise have taken place.
See here.