User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday February 26, 2008 - 22:58:55 GMT
Reuters -

Share This Story:
| | Email

FOREX NEWS - Fed's Kohn says weighing need for more rate cuts

WILMINGTON, North Carolina (Reuters) - A top Federal Reserve official said on Tuesday that a weakened U.S. economy was a bigger worry than higher inflation, suggesting a willingness to lower interest rates further as the central bank tackles "difficult times."

"I do not expect the recent elevated inflation rates to persist," Fed Vice Chairman Donald Kohn told business school students at the University of North Carolina at Wilmington.

"In my view, the adverse dynamics of the financial markets and the economy have presented the greater threat to economic welfare in the United States," he said.

Kohn painted a gloomy picture of economic prospects. Retail sales and manufacturing data have been weak, and surveys of consumers and businesses in the current quarter have been almost uniformly downbeat, he said.

The central bank has wanted to reassure "lenders and spenders" that it stands ready to prevent "an especially adverse outcome," he said.

"Whether the Federal Reserve has done enough in this regard is a question this policy-maker will be weighing carefully over coming months," Kohn said.

Kohn acknowledged that a recovery in shaky financial markets was likely to take time, and said the correction in the beleaguered housing sector has further to go. He also said policy-makers must take into account the possibility of "very unfavorable developments."

"We have the tools," Kohn said. "As Chairman Bernanke often emphasizes: We will do what is needed."


The central bank has already cut base interest rates to 3 percent from 5.25 percent since mid-September, including an emergency three-quarter point rate cut announced on January 22 and a further half-point cut just eight days later.

Kohn's remarks coincided with the release of Fed documents showing that a majority of the 12 regional Fed branches had backed aggressive rate cuts last month, while directors at the Dallas and Richmond banks favored leaving rates unchanged.

Dallas Federal Reserve Bank President Richard Fisher, a noted hawk who voted against the second rate cut, said separately that inflation was a worry, highlighting a split on the Fed's policy committee.

"I'm more concerned about inflation than I have been of late. It's a growing concern ... I do have a concern that it's beginning to feed into expectations," Fisher told the Public Broadcasting Service's "Nightly Business Report."

Investors, however, saw the Fed's No. 2 official as offering a better guide to future policy action and his remarks, on the eve of congressional testimony by Fed Chairman Ben Bernanke, lifted the Dow Jones industrial average .DJI on hopes of an additional lowering of interest rates.

The Fed's next scheduled meeting is March 18 and interest rate futures markets imply a 96 percent likelihood the central bank will reduce rates by another half point, to 2.5 percent.

Bernanke delivers the Fed's semi-annual report on the economy in two days of testimony on Wednesday and Thursday. Both hearings start at 10 a.m. (1500 GMT).

In economic projections released last week, the central bank lowered its growth forecasts for 2008 and raised its projections for unemployment and inflation.


"Reading between the lines here, the slowdown in the economy that we're seeing today is likely to curb inflation in the second half of the year," said Mark Vitner, an economist with Wachovia in Charlotte, North Carolina. "Trying to fight inflation today is like fighting the last war -- right now the Fed needs to focus on making certain that we avoid recession."

Recent higher readings on inflation, such as the 4.3 percent year-on-year rise in the consumer price index in January reported last week, are "disappointing," Kohn said.

He added that higher costs of energy and imports may be passing through to core consumer prices -- a point of worry to his colleague, Fisher.

A government report on Tuesday showed U.S. producer prices jumped by a surprisingly steep 1 percent last month, with core prices, which strip out food and energy costs, up a sharper-than-expected 0.4 percent.

Some financial market participants have begun to worry that rising prices may restrict the Fed's ability to ease monetary policy to spur an economic rebound.

But Kohn said inflation expectations "have appeared reasonably well anchored, giving (the Fed) room to focus on supporting economic growth." Even so, the central bank will continue to monitor the inflation situation "very carefully," he added.

(Additional reporting by Mark Felsenthal and Alister Bull in Washington; writing by Mark Felsenthal and Alister Bull; Editing by Dan Grebler)

© Reuters 2008 All rights reserved


Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered to YOUR charts in real-time.

Register To Test Your Amazing Trader

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Tue 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales

John M. Bland, MBA
co-founding Partner,

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube

Max McKegg's Daily Forex Trading Forecasts

Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.

Request a TRIAL of Max's Forex Service.


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

Currency Trading

Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by

Forex Brokers

The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

Forex Trading

Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

FX Trading

Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

Forex Blog also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105