Reax in Germany to Bernanke speech

Ben Bernanke painted a grim picture of the US economy, leading to speculation about further interest rate cuts. While rate cuts are seen as positive for stocks, there is fear of a recession. A potential rate cut of 25 to 50 basis points was hinted at, but inflation concerns challenge this move. The US is divided between those worried about inflation and those fearing a recession, with Bernanke caught in the middle.

What impact do interest rate cuts generally have on stock markets?

• They are usually negative for stocks.

• They have no impact on stocks.

• They are generally positive for stocks.

• They cause stocks to become volatile.

What is the potential range for the upcoming interest rate cut in the U.S.?

• 75 to 100 basis points

• 10 to 20 basis points

• 25 to 50 basis points

• 50 to 75 basis points

What is one of the main concerns that complicates the decision to cut interest rates?

• Rising unemployment

• Currency devaluation

• Inflation risks

• Trade deficits

What are the two opposing concerns in the U.S. regarding the economy?

• Government debt and consumer spending

• Currency strength and trade balance

• Inflation and recession

• Trade wars and unemployment

Where does Ben Bernanke stand in the debate between inflation and recession concerns?

• He supports inflation concerns.

• He is caught between the two concerns.

• He supports recession concerns.

• He is neutral and does not take a side.