Thursday, January 10, 2008

Bernanke Speech at 1 pm and schizophrenic market

With new signs that the US economy is heading for recession, Federal Reserve Chairman Ben Bernanke is likely to signal the central bank's intentions on interest rates in a speech later today.

Bernanke, known for a higher degree of transparency than his predecessors, has shown a recent tendency to let Wall Street know when the Fed sees significant changes in economic conditions, which may warrant Fed policy moves. The Fed next meets in late January, where it is widely expected to cut rates further.

"Bernanke’s going to have to say something, if there’s been a material change in the economy,” says Christopher Rupkey, senior financial economist at Bank of Tokyo-Mitsubishi-UFJ.

Bernanke is scheduled to discuss the economy and the financial markets at a 1 p.m. ET speech in Washington, sponsored by Women in Housing and the Exchequer Club. He will also take questions. CNBC.com will carry the complete session live.

http://www.cnbc.com/id/22589686

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Market is schizophrenic as it changes its bias and mood in a few hours. With a better Eco news and 'AA" good earning news, market is still bloody.

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