{"id":192,"date":"2007-11-15T12:40:45","date_gmt":"2007-11-15T12:40:45","guid":{"rendered":"http:\/\/www.the-finance-zone.co.uk\/uncategorized\/bernanke-says-us-economy-to-slow\/"},"modified":"2007-11-15T12:40:45","modified_gmt":"2007-11-15T12:40:45","slug":"bernanke-says-us-economy-to-slow","status":"publish","type":"post","link":"https:\/\/the-finance-zone.co.uk\/index.php\/2007\/11\/15\/bernanke-says-us-economy-to-slow\/","title":{"rendered":"Bernanke says US economy to slow"},"content":{"rendered":"\n\n\n
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Federal Reserve chief Ben Bernanke has warned that the US economy will slow noticeably before the end of the year.<\/strong>He blamed the slowdown on the credit crisis, which has made it harder for banks and individuals to borrow money.<\/p>\n

He said that there was likely to be more “financial restraint on economic growth as credit becomes more expensive and difficult to obtain”.<\/p>\n

In the longer term, he said that the greater premium attached to risk may lead to a healthier financial system. <\/p>\n

“Investors have also become more cautious and are demanding greater compensation for bearing risk,” he said.<\/p>\n

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The credit crisis, caused by an abundance of debt of questionable value, has made banks more reluctant to lend money.<\/p>\n

Mr Bernanke acknowledged that this was causing particular problems to homeowners who wanted to refinance their mortgages to offset the end of special offer rates.<\/p>\n

‘Sluggish growth’<\/strong><\/p>\n

Some analysts say that the comments make it more likely that there will be another interest rate cut before the end of the year.<\/p>\n

“In particular, it’s his comment that the FOMC (the rate-setting committee) expects growth to slow noticeably in the fourth quarter and expects sluggish growth in early 2008,” said Dustin Reid from ABN Amro in Chicago.<\/p>\n

“It’s perhaps a warning that the Fed may be looking to downgrade its growth outlook,” he added.<\/p>\n

But others say that it is just confirmation of how bad the outlook is for the economy.<\/p>\n

“They are worried about the economy. They are worried about inflation,” said Christopher Low at FTN Financial in New York.<\/p>\n

“Bernanke is in a box and it is getting smaller,” he added.<\/p>\n

Mr Bernanke was addressing the Congress’ Joint Economic Committee.<\/p>\n","protected":false},"excerpt":{"rendered":"

Federal Reserve chief Ben Bernanke has warned that the US economy will slow noticeably before the end of the year.He<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12,48],"tags":[],"class_list":["post-192","post","type-post","status-publish","format-standard","hentry","category-economy","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=192"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/192\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}