In a speech today Feddy Reserve Chairman Ben Bernanke suggested that even steeper interest rates could be in the works. His strong language suggests that they’re considering a half-point drop, down from the current rate of 4.25%. If they follow through, the cut would be expected to be announced at the next Reserve Board meeting on January 29th. Last time rates were cut we took a look at how it affects the price of a bushel of corn in Kansas, i.e., you the average consumer, and another rate cut would be more of the same.

Chairman Ben S. Bernanke At the Women in Housing and Finance and Exchequer Club Joint Luncheon, Washington, D.C. January 10, 2008 [FederalReserve.gov]

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