Are Bernanke's rate cuts over?

Investors think that there is a possibility of one more Fed rate cut.

However, as you will see, I don't think that is going to happen, and if Bernanke does cut rates, he will be faced with a much bigger problem relative to the handling a rising inflation problem.

I know ... he said that inflation was moderating in his last statement.  We commented before he said it, and we said that such a statement would not be correct. 

Longer term, inflation is rising and will rise faster than anyone expects in the near term.

What's the evidence?

Long term bond yields are saying that there is a building inflation problem as seen on the chart below.  Long term 30 year bond yields relate to what is happening on the inflationary front.

If you look at our 30 year bond yield chart below, you will see that a long term descending channel was broken to the upside in February. 

The yields went on to form an inverted Head & Shoulders pattern.  This means that the likelihood is that the 30 year bond yield will move up to 53 this year.

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