Fed: Inflation will ease interest rates will imply.

<P> Although recent data show rising U.S. inflation pressures, but Fed Chairman Ben Bernanke insisted that inflationary pressures will ease in the future. .Market that the Fed will cut interest rates implied overwhelmed position. .</ P> <P> It http://finance. Hearing, Bernanke on Capitol Hill hearing yesterday, said the current economic growth prospects are still not optimistic, but inflationary pressures may be mitigated in the future. .</ P> <P> "Since July last year, economic conditions become less and less optimistic." Bernanke said in parliament, while the weak labor market and rising unemployment. .</ P> <P> the Fed is concerned, it is difficult days, the economic recession facing the risk of inflation lingering shadow. .The latest consumer confidence index showed consumer confidence in the doldrums, home prices in 21 years the biggest drop since. .At present the Federal Reserve is widely expected to be cut interest rates again on March 8, Bernanke This time position in the market expected. .</ P> <P> Bernanke reiterated the Fed in the coming months will continue to pay attention to inflation and inflation expectations, inflationary pressure is expected to slow this year, PCE (personal consumption expenditure index) there will be significant this year .down, growth is expected to be in the range between 2.1% to 2.4%, core PCE was 2.0% to 2.2%. .</ P> <P>, however, have different views on the market. .Tuesday, 10-year bonds and 10-year inflation-protected Treasury yield spread reached 246 basis points, nearly 8 months for the highest value in the past few months, the interest rate level has been maintained at 230 basis points .above the inflation expectations of investors remain high. .</ P> <P> inside the Fed for what is the most serious problems are still differences, although Members prospects for economic growth and inflation are concerns, but focus is different. .</ P> <P> views of Federal Reserve Vice Chairman Donald Kohn and Bernanke, the same as that economic growth is the biggest problem currently facing. .Cohen said Tuesday the U.S. economy is in a difficult period, although there are inflationary pressures, but in the next few years, the overall inflation and core inflation will diminish. .</ P> <P> Dallas Federal Reserve Bank President Richard Fisher in an interview the same day that while he and his colleagues worried about the economy as growth prospects, but he was most worried about inflation expectations. .</ P> <P> Fisher of the Federal Open Market Committee (FOMC) cut interest rates in January by 50 basis points against the only member. .</ P> <P> Federal Reserve has cut interest rates by a cumulative 225 basis points, but the stimulating effect on the economy is not obvious. .Bernanke said the Fed needs to cut interest rates before the policy carefully to determine whether to play the expected role. .Cohen also believes that lower interest rates some time after the impact will spread to the economy. .</ P> <P> Cohen also said that financial institutions began to pay more attention to risk, although this is a good sign, but there appear to be some overkill, the real estate market and has a negative impact on economic growth. .</ P>.