Bernanke under pressure
Federal Reserve chairman Ben Bernanke will have to show Congress and investors that he can be creative about raking in cash from the financial system in order to keep interest rates at record lows. Predictions are being put forth that he will outline his strategy for exiting the biggest monetary expansion in history when he delivers his semi-annual economic report to Congress tomorrow.
The biggest task at hand for Bernanke is to convince lawmakers and investors that he is ready and able to contain inflation as the economy recovers. If he is able to prove worthy of the task, the laid out plan may give leeway to hold down borrowing costs for as long as it takes to reduce unemployment from a 25-year high.
Anticipation of the semi-annual economic report has the US currency exchanging at GBP0.6047 and EUR0.7029.
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