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Federal Reserve Chairman Ben Bernanke has announced that the Fed’s persistant attack on inflation over the past two years may be nearing an end. He signaled that 1 more interest rate hike and then the Fed will take a break. Of course, he was not that blunt, but this was how his appearance at the Congress Joint Economic Committee was interpreted by experts.

How this will effect mortgage rates is to be seen, but for those who are invested in Adjustable Rate Mortgages may see a reprieve from the onslaught of increases they have seen the past couple of years.

 

Keeping his options open, Federal Reserve Chairman Ben Bernanke signaled Thursday that after one more interest rate increase the central bank may take a break - perhaps only temporarily - from a rate-raising campaign aimed at keeping inflation at bay.
In his most extensive comments yet on the possible path of monetary policy, Bernanke also suggested that interest rate decisions could become less predictable than they have been as Fed policymakers rely more heavily on barometers of economic activity and inflation.
The Federal Reserve, which has raised rates 15 times at policy meetings over the past two years, “may decide to take no action at one or more meetings” in the future while waiting for economic information, Bernanke told Congress’ Joint Economic Committee.
“Of course, a decision to take no action at a particular meeting does not preclude actions at subsequent meetings,” he added. via The Modesto Bee.

Related posts:

1. Bernanke Signals More Rate Cuts In Congressional Testimony
2. Sluggish Economy Due To Housing Slowdown According To Bernanke
3. Bernanke Says Mortgage Troubles Not Spreading
4. After Fed Rate Cuts, Mortgage Rates Continue To Rise
5. Wall Street rallies on Bernanke speech