Bernanke speech to reinforce the expected: the United States cut interest rates another 50 basis points next month.

<P> 27 in Fed Chairman Ben Bernanke testimony before the U.S. House of Representatives that the U.S. economy is the biggest risk facing declining growth, the authorities would "act as needed" to take timely measures to support the economy. .The day before Bernanke's deputy Cohen made similar remarks, analysts generally believe that interest rate adjustments in the future on this issue, the Fed is increasingly given to the outside world a clear signal: cut interest rates again next month, almost certainly, the market .the magnitude of the expected 50 basis points. .</ P> <P> the U.S. economy is facing three major threats </ P> <P> It http://finance. Hearing, in the U.S. House of Representatives Financial Services Committee hearing, Bernanke said the U.S. economy is facing .The main risk is still slower growth. .Specifically, including the three major risks: real estate, and labor market conditions may worsen further than expected, while credit market conditions may also be increasingly tight. .</ P> <P> "FOMC will carefully assess the future economic data, and to act promptly on demand to support economic growth, to avoid the potential downside risks." Bernanke said in testimony it this way. .FOMC (Federal Open Market Committee) is the Fed's interest rate decision-making body. ."Although the majority of FOMC members that tends to improve economic prospects, but we still have to face downside risks to growth remain, it is very important." Bernanke said. .</ P> <P> Bernanke acknowledged that since last summer, the U.S. economy has become very bad, the real estate market downturn continues, the credit crisis worsening employment situation is deteriorating. .He pointed out that this series of negative factors to the American public and businesses on consumption and investment have become more cautious, which further exacerbated the slowdown in the U.S. economy. .</ P> <P> recent weak economic data also confirm Bernanke's judgments. .27, the same day, the U.S. durable goods orders issued in January fell 5.3%, down more than expected, mainly because companies cut spending. .U.S. new home sales last month dropped in February 1995 to the lowest level of house prices and a record 15% compared to last year's biggest drop in history. .</ P> <P> or again cut interest rates by 50 basis points next month </ P> <P> though, including Poole and other Fed officials have repeatedly expressed concerns on inflation is accelerating, but Bernanke's latest statement was proved, he .agree with Federal Reserve Vice Chairman Donald Kohn's view that financial market turmoil and economic slowdown is "a greater threat." .</ P> <P> Bernanke said inflation has been on the rise in recent months, mainly by the impact of high energy prices. .However, if global economic growth lower than expected, then, energy and other commodity price pressures will be eased, the future rate of inflation may not be as high as expected. .In addition, if the utilization of domestic resources would decline more than currently expected, the inflation situation will be eased. .</ P> <P> analysts also noted that Bernanke testimony before the four mentioned in the economy "downside" risk, adding that since the Federal Reserve in January data show regular growth "sluggish." .In his speech after the announcement, widely expected the Fed's regular meeting next month, 18 will certainly be cut again. .</ P> <P> the latest Reuters survey, primary dealers of U.S. government bonds predicted the Fed will cut interest rates next month, and most agencies have raised expectations of rate cut, the general view is that interest rate cuts .50 basis points. .The survey also showed that most traders expect the Federal Reserve in the April 30 regular meeting will be cut, most agencies are expected to be lower and lower by 25 basis points. .</ P> <P> to avoid recession, the Federal Reserve since last September has repeatedly cut interest rates, the cumulative 225 basis point interest rate cut the Federal funds rate to 3% currently. .</ P> <P> even behind the Sovereign Wealth Fund Investment </ P> <P> testified in 27 days, Bernanke also particularly on the issue of sovereign wealth funds answered questions from Members. .Bernanke believes that sovereign wealth funds investing in U.S. assets are good, and he encouraged U.S. banks to finance these funds. .</ P> <P> "I think the (sovereign wealth fund investment) is very useful, we should welcome such investment." Bernanke told the House Financial Services Committee, said he added that the U.S. effectively the existing system, to .resolve the United States could face the risk of national security. .</ P> <P> latest news that several major bond insurers in the United States in times of crisis the verge of relegation, the U.S. regulators are actively associated with sovereign funds again come to the rescue. .Overseas media reported that New York State Insurance Leader Dina Luo said Wednesday that he had with the sovereign wealth fund to invest in U.S. talks on the possibility of bond insurers, but he declined to give further details. .</ P>.