Have interest rates stabilized or are rates going Up?

Don’t ask the Fed, they can’t make up their minds, last week, Federal Reserve Chairman, Ben Bernanke suggested that the current Fed interest rate policy is “well positioned to promote moderate growth and price stability over time”. That “Fed Speak” signals that the central bank is done cutting interest rates for now, even though inflation is still a concern, “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”, Bernanke also said.

But wait a minute, today, the New York Fed President, Timothy Geithner, and the Dallas Fed President both said higher interest rates might be needed to dampen global inflation. Less then a week later then the Chairman’s suggestion that the policy is “well positioned to promote moderate growth and price stability over time”.

As we all are aware, these are challenging times, oil and gasoline prices are going through the roof, the housing “depression” is still going on, why make things harder for everyone by making conflicting statements about the direction of interest rates in such a short period of time.