Fed Officials Hint At No Rate Cut In December

The market reacted dismally last week to a slew of bad economic news, not least of which was that The Fed may choose to not cut the prime lending rate further in it's Decmebr session. Given the woes of the housing market and miserable home sales data, many question why the Federal Reserve Chief, Ben Bernanke, would choose such a path. The answer, in short order, is that Mr. Bernanke is attempting to establish himself on his own merit, and wishes to stand firm on his believe that the chief concern is to curb any possibility of inflation. Downward pressure will come from the White House, since the Bush administration wants to do everything it can to ensure his Republican party puts the next President in the White House. An economy which is barely limping along will not help his cause. Read full article