California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Today, Federal Reserve Chairman Ben Bernanke spoke before the Senate Banking
Committee illustrating that the fragile economy is being confronted by numerous
difficulties including persistent strains in the financial markets, rising joblessness,
housing and inflation despite the Fed’s aggressive interest rate reductions and other
fortifying steps over the past year.

In addition, Bernanke raised a warning that increasing costs for energy and food are
elevating inflation risks.  The situation poses ‘significant challenges’ said Bernanke. 

These issues challenge the Fed policymakers as they try to chart the best course for
keeping the economy growing while making sure inflation doesn’t dangerously flare up.

Bernanke identified that the economy over the rest of the year will grow appreciably
below its trend rate mostly caused by the weakness in the housing market, high energy
prices, tight credit conditions and inflation.

I am Tim Johnson and this has been the California Business Minute.