Bernanke testimony casts pall over economic recovery
Gold prices falling; Interest rates ready for a hike?
Federal Reserve Chairman Ben Bernanke has been under constant fire since the beginning of the great recession. Some people say he was put into a difficult situation, but still others maintain that his performance has been worthy of scorn. Marketwatch reports that gold prices have fallen for the third straight day, while Reuters reports that the Bernanke testimony has people skittish on jobs and America’s economic recovery. Payroll loans should be expected to continue at their current rate as the economy remains uncertain.
Frank McGhee of Integrated Brokerage Services told Reuters that difficulties with the euro have shifted some of gold’s value back toward the dollar. Gold bullion, which has generally been seen as safe in tough economic times, is tending to run with riskier markets, which some consider to be a bad sign.
Recovery “not yet sustainable”
Continued low interest rates go along with this, which does little to encourage investors. Bernanke testimony included a promise to Congress that the Federal Reserve will abandon its “ultra-low monetary policy” when there is real recovery, namely by adjusting the rate for lending between banks.
Gold and currency trade are down
That’s the way it will stay until there are more obvious signs of recovery, signs that sustainable recovery is well underway. Reuters indicates that the International Monetary Fund is attempting to liquefy its gold supply, which is influencing prices and keeping traders wary. It all leaves regular people wondering where they can get a personal loan to make expenses. The Bernanke testimony doesn’t make things appear any more positive at the moment.