Recently released minutes of the Federal Reserve Board meeting reveal that the Fed is increasingly worried that the already beginning recession may be much worse than initially feared. (more…)
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Posts Tagged ‘recession’
Service Sector Shows Economic Contraction
An early report by the Institute for Supply Management shows that the non-manufacturing (mostly service sector) index fell to 41.9 in January. Any reading below 50 is considered a contraction.
This is a huge variance from bullish economists that expected a 53 reading. It is also a clear sign that recession is ominous. Investors agreed, sending stock prices immediately tumbling. (more…)
Fed Slashes Rates to Resist Recession
The Federal Reserve Board voted to reduce both the federal funds rate and the discount rate by three quarters of a percent. In an emergency move, the Fed acted ahead of next week’s scheduled meeting.
Huge sell-offs in Asian and European markets were expected to be matched by a similarly drastic fall in US stock prices. The holiday kept US stock exchanges closed, which allowed for two days of losses overseas. (more…)
