Federal Reserve Chairman Ben Bernanke will testify about the Monetary Policy Report before the US House of Representatives Committee on Financial Services, in Washington DC.  This is the first of a two day testimony on Capitol Hill. Tomorrow he speaks at the Senate. 

Vice Chairman Kohn gave the preview yesterday already has indicated that the threat to the economy is in growth and the "markets" and inflation was less of a concern.  The credit crunch is starting to really hurt the mortgage market.  Consumers, which accounts for 2/3 of the US GDP is being squeezed with lower home prices, increasing supply of homes on the market, and higher rates (30 year mortgage rate is 6.27% from 5.5% since mid January).   This has stopped mortage financing and refinancing on a dime.

The other key words to listen to are his views on "inflation expectations".  If he characterizes expectations as "relatively contained" then there is no change in his inflation opinion.