Money Talks: Another Rate Slash on the Horizon, Hints Bernake

Today, Federal Reserve Chairman Ben Bernake testified before the House Financial Services Committee on the Federal Reserve's 'Monetary Policy Report to Congress', hinting at another rate cut to stimulate projected sluggish business growth.

Bernake Testimony

Bernake noted that with energy (most specifically oil) prices increasing drastically, as well as the decline in the housing market has but a burden on business growth in the United States, and will result in increasing inflation (up 2.1%-2.4% from the fall predictions).

**Politicos are anticipating a rate reduction when the Federal Reserve Board meets again on March 18. This would mark the second month of rate reductions in 2008; the 1.25% rate reduction over eight days in January accounting for the largest slash during a single month in a quarter century.