Analysts are more than inclined to take his statement as a prelude to another interest cut.

US have been hardly hit by the housing slump, credit problems and detoriating job figures.  Moreover, inflation seems to be going on the upswing lately with the commodities and energy going through the roof.

If energy prices continue on the course it is taking right now, we may very well go into a $5/gallon gasoline price within the next two years.  Last January the Fed has already slashed 1250 points.  Maybe another 500 points interest cut may be expected this time.

Seems like we are getting more bad news on a daily basis.  We already know the problems in the credit industry has made a huge impact on the housing market which drove the prices more as the Commerce Department has reported.  I hope we don’t get into what economist have been indicating - stagflation.