Fed Chairman Bernanke spoke at the Economics Club of Washington today. Here’s the full speech, and below are key excerpts with subheads added by us. There’s an entire section of the speech devoted to ‘how to avoid crises in the future’ and it discusses proposed regulations. But below covers economic and inflation outlook as well
Economics Club of Washington
Since the Fed rate pause on September 20, fixed and ARM rates have come down about .25%. The logic driving rate markets lower is that the Fed’s 4.25% of rate hikes from June 2004 to June 2006 have beat inflation out of the economy. But since inflation data lags the economy by about six months,