Fed Chief to Address Market Uproar

Wall Street will be craining for clues on possible rate cut

By Peter Fearon, Newser Staff

Posted Aug 30, 2007 5:02 AM CDT

(Newser) – Tomorrow, Ben Bernanke will make his first speech since turmoil erupted in the world's financial markets early this month. As Wall Street listens for clues about whether interest rates will be cut next month, the Fed chief be walking a tightrope, the Washington Post observes. If he appears indifferent, panic could deepen; if he seems too anxious to stem losses, he'll encourage more irresponsible investing.

Bernanke observers say his position is that steep falloff in the price of mortgage-backed securities doesn't necessarily require Fed action, but when broader markets freeze, the health of the economy is jeopardized. "The chief characteristic of a financial panic is that investors lose their bearing," says one analyst. Whether interest rates are cut will depend on how much investors' confidence has recovered over the next several weeks.

Chairman of the Federal Reserve Ben Bernanke leaves a meeting on Capitol Hill, Tuesday, Aug. 21, 2007 with Chairman of the Senate Banking committee and Democratic presidential hopeful Sen. Christopher... (Associated Press)

A specialist on the floor of the New York Stock Exchange keeps his eyes on three monitors late on a down trading day, Wednesday, July 18, 2007. Stocks retreated as investors reacted uneasily to Federal... (Associated Press)

Federal Reserve Chairman Ben Bernanke. (AP Photo/J. Scott Applewhite/files) (Associated Press)

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Fed Chief to Address Market Uproar

Wall Street will be craining for clues on possible rate cut

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30-Year Mortgage Rates Fall to Record Low 5.01%

Fed buys $10.2B in agency mortgage bonds

Fed Cuts Rate to 0%-0.25%

Target is record low as Reserve battles recession

Goldman May See $2B Fourth Quarter Loss

Credit downgrades key catalyst in Wall Street titan's loss of value

Fed Won't Say Where $2T in Loans Went

Money is in addition to $700B Wall St. bailout; collateral unclear, too

Investors Urge Reluctant Fed to Buy Mortgage Debt

Critics say plan would put too much risk on taxpayers

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Wall Street will be craining for clues on possible rate cut

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OTHER STORIES ON OUR RADAR

Reading the Fed tea leaves

Ben Bernanke • Wall Street • Federal Reserve • interest rate • credit crisis • mortgage debt • securities • mortgage backed securities

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

30-Year Mortgage Rates Fall to Record Low 5.01%

Fed buys $10.2B in agency mortgage bonds

Fed Cuts Rate to 0%-0.25%

Target is record low as Reserve battles recession

Goldman May See $2B Fourth Quarter Loss

Credit downgrades key catalyst in Wall Street titan's loss of value

Fed Won't Say Where $2T in Loans Went

Money is in addition to $700B Wall St. bailout; collateral unclear, too

Investors Urge Reluctant Fed to Buy Mortgage Debt

Critics say plan would put too much risk on taxpayers

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