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Showing posts with the label US Economy

Top Officials scale back more optimistic forecast of the economy

Top US officials indicates that problems in housing and mortgage-related markets had spread more widely and proved more intractable than he predicted three months ago. In response to this, Fed chairman signaled on thursday that the Fed was ready to reduce interest rates yet again. Stock prices, which normally rally when the Fed hints it will lower borrowing costs, tumbled instead. The Dow Jones industrial average dropped yesterday by 175 points, or 1.4 percent; broader stock indexes dropped by similar amounts.