Bernanke Comments on Potential Interest Rate Hikes

At an international conference on Monday, Federalthat point to inflation. For example, he noted that
Reserve Chairman Ben Bernanke promised thatcore inflation was rising by 3% or more.Most
inflation will be fought by the centralconsumers can expect rates to continue to rise.
bank.Bernanke stated that the Federal ReserveBernanke seems determined to maintain the Fed's
"will be vigilant to ensure that the recent patterncredibility in fighting inflation, which has taken 20
of elevated monthly core inflation readings is notyears to establish.Many industry experts are
sustained."Economists have closely been watchingconcerned that rates will go too far in the fight
the Fed for any suggestion that the interest rateagainst inflation. Many consider former Fed
increases will be paused at the Fed's June 28-29chairman Alan Greenspan's push to fight interest in
meeting. If the rate is increased, it will be for thethe late 80's as the cause of the stock market
17th consecutive time.After Bernanke's speech,collapse.Bernanke says that inflation is a fight that
most analysts now expect rates to continue theirthe Fed will continue to make.Martin Lukac (
upward march. Many expect rates to continue torepresents and a finance web-company
rise at the August meeting, also.Investors hadspecializing in real estate/mortgage market. We
remained optimistic, especially given recentspecialize in daily updates, rate predictions,
reports that showed slower economic growthmortgage rates and more. Find low home loan
than expected.Bernanke, however, said that theremortgage interest rates from hundreds of
have been a number of unwelcome developmentsmortgage companies!