No More Cuts By The Fed & IEA Weighs in on Future Oil Demand

 
6:30 AM, TUESDAY — Federal Reserve Chairman Ben Bernanke spoke at the Boston Fed yesterday and let it be known that there will be no more interest cutting by the central bank. Bloomberg has a take on this meeting. My take on this is that the fed was already late in cutting rates by the time Jim Cramer went on his tirade urging them to slash rates. Unfortunately, the fed waited a few months too long, and then began the downward spiral of cutting and cutting, all too late in the game. Then came the bailout of Bear Stearns and additional aftershocks. I think this decision to not cut rates further is a good one, as everyone keeps looking for a bottom to be in, but now the fed has to help control the cost of commodities to the consumer.
 
On the other hand, I have an uneasy feeling about Bernanke, who has a supposedly apolitical position, trying to paint a picture that the worst is over. The simple fact is that the cost of commodities, the volatile market, the housing crisis and the overall economy aren’t yet showing the same picture. It seems more like wishful thinking than anything based on facts, in my opinion.
 
Reuters is reporting the International Energy Agency is saying the demand for oil worldwide in 2008 will rise at its slowest pace in six years.
 
If you’re trying to stay on top of the battle between Carl Icahn & Yahoo, check out The Wall Street Journal’s latest story.
 
As for my radar screen this morning, I’m looking into steel and aluminum companies, such as Alcoa, which enjoyed a 7.5 percent gain yesterday.
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