Bernanke's big bucks.To date (knock on Noun 1. knock on - (rugby) knocking the ball forward while trying to catch it (a foul) rugby, rugby football, rugger - a form of football played with an oval ball rugby, rugby football, rugger - a form of football played with an oval ball wood), Federal Reserve Chairman Ben Bernanke and his associates have confounded their critics, ending the long series of hikes in U.S. short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. at precisely the right moment. Central bankers often seek a successful "soft landing," but usually fail. Bernanke may hit the bull's-eye on his first try. Be that as it may, nothing in the near-term will be simple. Questions abound. With oil prices declining at the beginning of 2007, for example, should the Fed see this (and any further) fall in oil prices as a potential stimulant stimulant, any substance that causes an increase in activity in various parts of the nervous system or directly increases muscle activity. Cerebral, or psychic, stimulants act on the central nervous system and provide a temporary sense of alertness and well-being as for growth acceleration and higher inflation down the road? Is it possible the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. has yet to feel the full force of the bursting of its housing bubble? Looking at the experiences of countries such as the United Kingdom, Austria, the Netherlands, and Spain, any weakness that spills over from a weakening housing sector tends to emerge roughly six to eight quarters after the top in housing. The U.S. housing market peaked in the summer of 2005. That means consumer weakness may soon accelerate. Sound intimidatingly confusing con·fuse v. con·fused, con·fus·ing, con·fus·es v.tr. 1. a. To cause to be unable to think with clarity or act with intelligence or understanding; throw off. b. ? That's why they pay Ben Bernanke the big bucks. And so far, his instincts have been right on the money. Federal Reserve Chair Ben Bernanke: Will he hit the bull's-eye in his first try? |
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