And Today's Mensa Award Goes To:

[Contrary1]

Federal Reserve Chairman Ben Bernanke for his brilliant assessment on the state of the US economy.

"WASHINGTON - Federal Reserve Chairman Ben Bernanke said Thursday that a host of economic problems, including the severe housing slump, will cause business growth to slow noticeably in coming months.

Bernanke told Congress’ Joint Economic Committee that the central bank is watching developments closely, but gave no signal that it’s prepared at the current time to cut interest rates even further.

Fed policymakers last week cut a key interest rate for the second time in two months, but disappointed Wall Street by discouraging expectations that it would follow with further rate cuts.

Bernanke said he and his colleagues believe economic activity will “slow noticeably in the fourth quarter” compared to the 3.9 percent pace of the third quarter..."

http://www.msnbc.msn.com/id/21688234/

[edhopper]

1. I don't know who said it first.

But the Fed now bases it's decisions on the applause meter from Wall Street.
Maybe they should notice that the rest of the world has given the thumbs down to the dollar.

[NewJeffCT]

2. Bernake knows that

He was appointed by Bush, though, and is down all he can to keep the economy afloat in the short-term - trying to put off a recession until after November of 2008.

Sure, lowering rates hurts the dollar vs the rest of the world currencies. However, it might help our economy in the short-term while holding off inflation for just a little while longer.

If Bernake can keep up his juggling act for another 11 months or so, he will have done his job. The next president will be stuck with the recession coupled with high inflation and not George W. Bush. Then, the Republicans will be able to blame Democrats because they've been in charge of Congress for 2 years (through November of 2008)

[soothsayer]

3. we're already at about a 20% inflation rate. I guess it will hit 33% before anyone

admits it.