Fed Leaves Door Open to Interest Rate Hike Why?

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You could have a room full of PhDs talking about this for days. Basically, Ben Bernanke thinks there is a chance that the economy is strong enough to produce inflation. Lower oil prices could lead to stronger than expected growth. There are many, many other factors though.

Mr. Bernanke has stated that he will review data as it comes available. He wants to be able to raise rates if he needs to, with as little disruption to markets as possible....Show more

I think if he were to talk in absolutes about the Fed's intentions on interest rates, it would hurt the economy either way he talks about them. If he were to make a very strong statement about how the Fed will act, by either closing the door on interest rate hikes or saying there will be indefinite hikes, the Fed would lose its effectiveness and take out the inherent flexibilty of the markets....Show more