Reader Poll - One Last Rate Cut?
Federal Reserve Chairman Ben Bernanke issued a rare warning on the risks that a weak dollar poses for inflation, but said U.S. interest rates are "well positioned'' for an economy facing both price pressures and threats to growth.
The downward pressures on the dollar "have contributed to the unwelcome rise in import prices and consumer price inflation," he said.
"We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations and will continue to formulate policy to guard against risks to both parts of our dual mandate, including the risk of an erosion in longer-term inflation expectations."
Bernanke has never put such emphasis on either the Fed's attentiveness to the dollar's decline or the inflationary dangers it poses.
Nonetheless some hold-outs believe one last rate cut might be just what the doctor ordered to boost the stock market and begin the next bull run.
That leads to our Fast Money Reader Poll. Do you think the Fed will lower interest rates one last time?
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