“It could be a turning point for the dollar,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon. “It’s very unusual for a sitting Fed chairman to talk about the dollar explicitly.’”

In fact, the dollar did rise to a two week high against the Euro and the Yen. Analysts seemed to be happy about what Bernanke said, but were still remaining cautious about over optimism. The dollar has faced a lengthy and brutal decline. Is this the start of the road back up or just a false start?

We’ll know more in the next few weeks, as investors react.

The gains came after a speech from Bernanke on housing and monetary policy in Jackson Hole, Wyo., and remarks from President Bush encouraging the use of Federal Housing Administration insurance.

In his speech, Bush noted that the subprime crisis is relatively modest compared with the entire U.S. economy, but he urged mortgage holders to refinance if they become delinquent on adjustable-rate loans.

The president, however, emphasized that it is not the government’s position to provide a wholesale bailout to all borrowers. He also promised to penalize predatory lenders.

Both Bush and Bernanke made it clear that they don’t plan on bailing anyone out over their financial decisions, but that they are at least sympathetic to the idea of lending a hand to people who need it most in the form of interest rate cuts and a chance to re-finance.

“Consequently, we will pay particularly close attention to the timeliest indicators, as well as information gleaned from our business and banking contacts around the country,” he said. “Inevitably, the uncertainty surrounding the outlook will be greater than normal, presenting a challenge to policymakers to manage the risks to their growth and price stability objectives.”

From Bernanke’s comments, it’s fair to say that no one is sure exactly what moves to expect next from the Fed. Most investors hope for an easing of interest rates, but Bernanke’s decision will be based on the most current data he possesses. All in all, the interest rate decision still remains a mystery.