Update: Maxine Waters D-CA shows the dangers of political influence on the Fed; Market Mover Wednesday: Ben on the Hill

Update: Maxine Waters D-CA, perfectly demonstrated the dangers of the political pressure and influence on the Federal Reserve. Rep. Waters thought the .25 increase in the Discount rate was like the raising of the Fed Funds Rate and would move the yield curve and mortgage rates. Her reaction tells you what will happen when the Fed finally DOES tighten. Imagine what the Critters will do when the Fed tries to sell the MBS it bought@ Fuggedaboudit@ She has Gentle Ben promising not to tighten for an ‘extended period’. If I had any way to bet the Fed wouldnt move for far too long I would…Gawd save us from the inflation…

10:15 am EST: Ben just began his opening remarks to the Financial Services Cmte. The Fed is predicting UE to drop to 6% in…wait for it…2012….consumer prices expected to rise 1-2% from 2010-2012….they still do not believe we can have inflation with declining wages….

I think this cycle will prove them wrong, of course when I buy food and gas no one asks me for the ‘core’ rate, they ask me for more of my money

…in other news new home sales dropped 11% in January…

LiveStream here

February 24, 2010. Tags: Ben Bernanke, Ben Bernanke on the Hill, Ben Bernanke testimony livestream, bubble, deficit spending, Economy, FED FUNDS RATE, Maxine Waters Ben Bernanke mortgage rates, Unemployment. Economy, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, Unemployment Statistics, Wall St. Comments off.