[Eagles Talon IV]

Depends on what part of the rise in inflation Bernanke thinks is caused by the housing market. There is a link between housing sales, both new and existing and the sales of durable goods such as washers, dryers, dishwashers, etc. AS far as that goes then the slow down in home sales could mean a lessening of inflation moving forward and a less urgent need to continue rate escalation.

Perhaps what Bernanke will do is pause and take a reading on inflation numbers for a month or 2 just to see. This is of course assuming that Greenspan raises rates in Nov and Dec. as he is widely expected to do.

[Moonman62]

Perhaps what Bernanke will do is pause and take a reading on inflation numbers for a month or 2 just to see.

That would be a step in the right direction. The Fed should use market indicators such as the dollar index, commodity prices, and the yield curve to keep the value of the dollar stable. That's all it takes. All the hocus pocus about the wealth effect, economic overheating, full employment, etc has been nothing more than an excuse to micromanage the economy and to cause more problems than what get solved.