US economy may contract - Fed
US Federal Reserve chairman Ben Bernanke has acknowledged for the first time that the economy may contract as home building weakens further, unemployment rises and consumer spending slumps. It now appears that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly, Bernanke said yesterday. He said the Feds emergency loan to Bear Stearns followed a warning the company would have to file for bankruptcy the next day resulting in a “chaotic” reaction.
For the majors, the policy official’s remarks led EURUSD to hold a long-term rising trend and rally over 100 points to 1.57. The pound, despite disappointing data of its own, took advantage of the weakened greenback to confirm a triple bottom and rally back to 1.99.
For the majors, the policy official’s remarks led EURUSD to hold a long-term rising trend and rally over 100 points to 1.57. The pound, despite disappointing data of its own, took advantage of the weakened greenback to confirm a triple bottom and rally back to 1.99.