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To: SouthFloridaGuy who wrote (645)3/28/2007 4:24:17 PM
From: $MogulRespond to of 1718
 
Bernanke Reiterates Inflation Concern; Says Economic Concern That Housing Spills Over Into the Rest of the Economy
To the downside, the correction in the housing market could turn out to be more severe than we currently expect, perhaps exacerbated by problems in the subprime sector. Moreover, we could yet see greater spillover from the weakness in housing to employment and consumer spending than has occurred thus far. The possibility that the recent weakness in business investment will persist is an additional downside risk. Because core inflation is above the levels most conducive to the achievement of sustainable growth and price stability, the Committee indicated in the statement following its recent meeting that its predominant policy concern remains the risk that inflation will fail to moderate as expected.