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Wall St mixed on rate cut hint(The Economic Times 27th Feb 2008)US stocks ended mixed Wednesday after Federal Reserve chairman Ben Bernanke hinted at more rate cuts to bolster a sagging economy and investors saw hopes for fresh capital for the troubled housing sector. The Dow Jones Industrial Average, which wobbled in and out of positive territory for most of the day, closed up a modest 9.36 points (0.07 percent) at 12,694.28. The Nasdaq composite rose 8.79 points (0.37 percent) to 2,353.78 and the Standard & Poor's 500 index fell 1.27 points (0.09 percent) to 1,380.02. Bernanke told Congress that weak US economic growth may prompt the central bank to cut short-term interest rates further if needed, citing "downside risks" to economic growth. Markets viewed the remarks as suggesting more rate cuts are on the way to rescue the economy. "Rate cuts are still on the agenda, and 'calibrating' policy is a matter of how much further the Fed will cut rates and when," said Stephen Gallagher, economist at Societe Generale in New York. "Recently there has been concern that higher inflation puts the Fed in a bind, but Bernanke's comments stress growth risks." Meanwhile the regulatory Office of Federal Housing Enterprise Oversight (OFHEO) announced plans to end portfolio caps for mortgage finance giants Fannie Mae and Freddie Mac, offering hope of more liquidity for the beleaguered housing market. More

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