Will Bernanke Open the Door to Fed Interest Rate Cuts in December?

There is a lot of discussion currently happening regarding whether Bernanke will open the door to federal interest rate cuts in December and if so, how significant these cuts will be.  The U.S. dollar has recently dropped to record lows against the Euro, Great British Pound, Swiss Franc and Canadian Dollar.   How will the rate cuts ultimately affect the value of the U.S. dollar and how will it affect the U.S. economy for the average consumer in the wake of the current credit crunch hysteria.  Generally, lowering of interest rates is considered to decrease the value of a currency so this could further weaken the already ailing greenback.  

On the one hand,  bearish sentiment and fear are always at their peak at the bottom of a market.  At the same time we cannot ignore the signals being given by economists that the

U.S. may be headed into a recession.  Many Forex traders are transferring their trading accounts into other currencies.   Some Americans are considering becoming expatriates in favor of other countries where their money will provide a more desirable lifestyle.  Where is the truth in all of this confusion and paranoia?  If you have any insights please leave a comment here.

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