Testimony of the Fed Chairman Bernanke
Read the following url link to the Federal Reserve on the testimony of the Fed Chairman Bernanke given on Feb 15, 2007 and answer the problems followed.
a. Give a few reasons for the unexpected but significant positive impact of this testimony on the Wall Street on that day
b. Does this testimony indicate that the Fed will not reduce the federal fund rate from its existing rate 5.25% for the rest of the year 2007? Why or why not?