Wall Street was set to open lower Wednesday, as investors paused from a three-day winning streak and waited for comments on the economy from Federal Reserve Chairman Ben Bernanke.Investors will be eager to learn whether Bernanke, in an appearance before Congress, gives any indication whether the Fed is more concerned about the slowing economy or the rising risk of inflation.
Recent data reports show the economy already may be facing the dual challenges. If so, this is a worst-case scenario for the Fed, which will have to choose whether to keep cutting rates to stimulate the economy, or halt rate reductions to cool off inflation.
Overnight in Europe, the euro broke above the key $1.50 level for the first time. Analysts attributed the new record for the eurozone currency to mounting investor conviction that the U.S. is indeed beset with both inflation and an economic slowdown.
Read More
