Thursday, November 8, 2007
STOCK MARKET PLUMMETS--GRIM FORECAST FROM FED--QUESTION: ARE YOU PROTECTED IN THIS DOWN MARKET?
The Chairman of the Federal Reserve, Ben S. Bernanke, gave testimony to the Joint Economic Committee in Washington today. His forecast was not optimistic. He said the economy is likely to slow down considerably in the fourth quarter. The circumstances precipitating the grim forecast include: (1) the housing recession, (2) surge in oil prices, (3) lack of confidence in the credit market, and (4) a weakening U.S. dollar. Bernanke indicated that the Fed would not be cutting interest rates again in 2007.
