The Fed Won't Give The Markets A Break

Amid inflation pressures, Bernanke isn't ready for a preemptive rate cut

There may come a day when Federal Reserve Chairman Ben Bernanke faces his first test from a full-blown financial crisis--but not just yet. So far, what is happening is more like a pop quiz than a major exam. Nevertheless, all eyes are starting to focus on just how Bernanke & Co. factor the current turmoil into the Fed's policy decisions, especially because of the growing possibility that conditions could worsen and threaten the health of the economy.

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