Goldman Predicts Recession

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• Fed Weighs Emergency Rate Cut

  Oct 2, 08 9:28 AM CDT
  Mounting fears that the credit crisis and continually worsening economic data will push a stagnant US economy into a severe recession has spurred the Federal Reserve to consider cutting interest rates from their current 2%, the Wall Street Journal reports. Even if the House follows the Senate in passing the $700 billion bailout, some action is likely. More »

• Wait on Rate Hikes Until Crisis Eases

  Sep 3, 08 5:55 PM CDT
  Critics claim the Federal Reserve has been too eager to cut interest rates, and that lax policy has exacerbated inflation. But the Fed should hold its ground, Desmond Lachman argues in the American, until the housing and credit markets are clearly on the rebound. The credit crunch has prompted banks to compensate with higher spreads and tighter lending standards, which should offset inflationary concerns. More »

• Fed Ponders Pause in Rate Cuts—After 1 More

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  The Federal Reserve may be ready to cool its torrid rate-cutting after a likely .25% percentage point cut at its meeting next week, the Wall Street Journal reports. Futures markets are betting Chairman Ben Bernanke is unlikely to rest just yet, with little change in the month-to-month economic picture, but will pause after that to assess the cuts' effect and avoid stoking inflation. More »

• US Drops 80,000 Jobs, Biggest Loss in 5 Years

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