NewsMine — economy — united-states — 2006-jan-aug — Viewing Item

Market uproar follows fed rate misunderstanding { May 2 2006 } Original Source Link: (May no longer be active)    http://www.msnbc.msn.com/id/12583997/ http://www.msnbc.msn.com/id/12583997/ Market uproar follows Fed 'misunderstanding' By Jennifer Hughes in New York Updated: 2:12 a.m. ET May 2, 2006 Stocks fell on Monday after CNBC's Maria Bartiromo revealed on air that Ben Bernanke felt his testimony last week had been "misunderstood." The anchor said Mr Bernanke had told her at the White House Correspondents' dinner in Washington on Saturday that he had not intended the markets to infer that the Fed was nearly done raising interest rates. "I asked him whether the markets got it right after his congressional testimony and he said, flatly, no," Ms Bartiromo said. She was reporting live from floor of the Chicago Mercantile Exchange and the resulting trading roar almost drowned out the rest of her remarks. The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused. She added: "He said he and his Federal Open Market Committee members were basically trying to create some flexibility for the Federal Reserve, saying the Fed may pause but the data will really dictate whether more rate hikes will occur." The S&P 500 fell 0.7 per cent and the Nasdaq Composite lost almost 0.9 per cent. Stocks had rallied on Mr Bernanke's testimony last week, which was interpreted as signalling a probable pause in the Fed's series of rate rises after its May meeting. "It comes off as a great example of over-communication and a possible attempt to over-fine-tune, assuming he was willing to go on the record with these comments - CNBC is not the Fed's obvious port of call to correct market expectations," said Alan Ruskin, strategist at RBS Greenwich Capital. The Fed declined to comment. Copyright The Financial Times Ltd. All rights reserved.

American wages falling behind inflation { August 28 2006 } Danger time for america says economist Danger time in america [jpg] Dollar continues to sink as dow tumbles { April 2006 } Dollar makes big gains early june Dollar may rally on higher interest rates { February 2006 } Dow index breaks 11 000 barrier { January 10 2006 } Economy slows sharply inflation heats up First halt in fed rate increase after 2 years { July 2006 } Ford closing plants in minnesota and virginia { April 13 2006 } Ford to cut thousands jobs 14 factories { January 23 2006 } Global stocks retreat on US interest rate fears Gold and stocks decline { April 2006 } Gold continues to drop early june as dollar gains Good job news knocks down stocks { January 2006 } Greenspan raises rates last time ever { December 2006 } Housing slowdown ripples through economy Lasvegas real estate market drying up Market uproar follows fed rate misunderstanding { May 2 2006 } Minimum wage not raised in 9 years blocked { June 22 2006 } Stocks and gold up { May 9 2006 } Stocks continue to slide early june { June 8 2006 } Stocks dive on faltering economy { January 21 2006 } Stocks fall and gold plummets mid june Stocks mixed after inflation worries persist { April 2006 } Stocks oil gold all rise { May 2 2006 } Stocks rally to 4 year high after 2006 new years Stocks sag as prices jump for gold oil { April 18 2006 } Stocks sink as oil and gold fan inflation fears { April 2006 } Stocks suffer biggest fall in 3 years { December 2006 } Trade deficits widened to record 2005 Unemployment rate proves inaccurate { December 2006 } Files Listed: 32

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