In testimony today in front of Congress, Fed Chairman Ben Bernanke said he sees threats to both economic growth and inflation.

There are “significant downside risks to the outlook for growth,'’ and “upside risks to the inflation outlook have intensified,'’ Bernanke said in semiannual testimony on the economy to the Senate Banking Committee in Washington.

What does this mean for Maui real estate? It means that Bernanke sees a possible near-term recession, ongoing liquidity issues in the mortgage market and pressure on inflation due to commodity prices. None of this is good news. It would all impact consumer spending and the willingness of investors to act aggressively. For details, contact us!