How bad is it when Lawerence Yun of NAR is telling Ben Bernanke to be careful cutting rates further.

Yun offered a caution. “With elevated inflation, the Federal Reserve should be extra careful about further rate cuts,” he said. “Mortgage interest rates, which do not move directly with Fed funds rates, may rise measurably and hurt the housing recovery if inflation gets out of hand. Monetary stimulus is plentiful – what is needed more at this point is a home buyer tax credit to get buyers off the sidelines and prevent the market from overshooting on the downside.”

This is from the NAR Press release. It's hard to believe that Ben B. does not see the higher inflation that everyone else is seeing. If the fed cared about inflation, they would not have cut the rates at their last meeting.

There is absolutely no justification for another rate cut (even quarter point). Oil is above $117! If they cut at their next meeting, the fed will have no credibility left (if they have any credibility left).