January payroll contraction another red flag
Wall Street Journal Feb 1, 08 9:27 AM CST
(Newser)
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Nonfarm payrolls declined 17,000 in January, the first monthly loss of US jobs since August 2003. The surprising loss—in manufacturing, construction, financials, and government—seems to vindicate aggressive action by the Fed, the Wall Street Journal reports. The number, which had been expected to climb by 75,000 jobs, raised both recession worries and hopes for yet another Fed rate cut.
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Officials signal further cuts possible as overnight lending rate hits 3%
Wall Street Journal Jan 30, 08 1:24 PM CST
(Newser)
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The Federal Reserve cut a key interest rate by a half percentage point today, reports the Wall Street Journal, bringing the benchmark overnight lending rate down to 3% even as officials signaled that further cuts were possible. The widely anticipated move follows last week's emergency .75% cut to a rate that stood at 5.25% just a few months ago.
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Economy in far worse shape than analysts predicted
Bloomberg Jan 30, 08 9:02 AM CST
(Newser)
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Economic growth braked so violently in the fourth quarter of 2007 that it wiped out a stellar third quarter, dragging annual growth to a 5-year low. Last quarter’s 0.6% GDP growth—after 4.9% pace in Q3—was just half what analysts expected, as the housing component plummeted 24%, its biggest fall since 1981. One key inflation gauge also saw a big 2.7% increase, Bloomberg reports.
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Investors worry rate cut won't be enough to avert US slump
AFP Jan 30, 08 7:49 AM CST
(Newser)
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European stocks followed declines in Asian markets as news of more subprime woes overshadowed an anticipated 50 basis point rate cut from the Federal Reserve and some positive economic data from the US, AFP reports. London’s FTSE 100 was down 0.85%, the Paris CAC was off 1.54%, Frankfort’s DAX 30 dipped 0.67% and the Euro Stoxx 50 was off 0.80%.
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MARKETS
Good news comes late in the day as rate-cut hopes persist
CNN Jan 29, 08 3:43 PM CST
(Newser)
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Stocks rose for a second straight session today thanks to a late rally. Flagging techs dragged down the markets initially, but then got a boost from a cheerful report on durable goods orders on the first day of the Fed meeting, reports CNNMoney. The Dow climbed 96.41 to 12,480.30, the Nasdaq 8.15 to 2,358.06, and the S&P 8.33 to 1,362.30
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MARKETS
Investors look for grim housing numbers to lead to a cut
MarketWatch Jan 28, 08 3:48 PM CST
(Newser)
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Stocks finished in positive territory today, riding hopes that grim new housing numbers will lead the Fed to cut interest rates this week. "The main event for the week will be the Fed-rate decision on Wednesday," a strategist tells MarketWatch. The Dow was up 176.72 to 12,383.89, the Nasdaq 23.71 to 2,349.91, and the S&P 23.36 to 1,353.97.
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Fed meets Wednesday to decide if another rate cut is needed right now
Wall Street Journal Jan 24, 08 9:29 AM CST
(Newser)
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The Fed’s emergency three-quarter percentage-point cut Tuesday to the short-term interest rate was a boon to US markets, but whether the Fed will go lower in its interest-rate lambada remains to be seen. Most analysts expect a half-point cut, to 3%, at the Fed's meeting Wednesday, reports the Wall Street Journal; some see the possibility of another three-quarters.
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OPINION
Decision smacks
of panic—and worse trouble yet to come
Reuters Jan 23, 08 10:13 AM CST
(Newser)
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Yesterday's steep interest rate cut—just a week ahead of a scheduled policy meeting—made the staid Federal Reserve come across as spooked and jumpy, leaving many to wonder if the Fed knows of worse news to come, Reuters' Ros Krasny writes. The surprise .75-point cut "is a declaration of a state of emergency for the US markets and the economy," a market strategist said.
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MARKETS
Markets decline, but emergency rate cut moderates effect
MarketWatch Jan 22, 08 3:38 PM CST
(Newser)
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Stocks declined today but ended the session up from the depths of their initial plunge, as the Fed's emergency rate cut seemed to calm freaked-out investors. "This at least gets people from piling in on the short side of things," one strategist told MarketWatch. The Dow fell 128.11 to 11,971.19, the Nasdaq 47.75 to 2,292.27, and the S&P 14.69 to 1,310.50.
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Fast, temporary stimulus would buoy flagging economy, Fed chief tells Congress
CNN Jan 17, 08 10:50 AM CST
(Newser)
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The country needs a federal stimulus package ASAP, Federal Reserve Chairman Ben Bernanke told the House Budget Committee today, advocating immediate legislation designed “so its effects on aggregate spending are felt as much as possible within the next 12 months.” But he said the package should be “explicitly temporary,” to avoid unwanted long-term stimulus and an undue deficit bulge, CNNMoney reports.
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Fed chief wants aid package that's quick and temporary
New York Times Jan 16, 08 7:51 PM CST
(Newser)
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Ben Bernanke insists he won’t take sides in a congressional fray over how to revive the nation’s flat-lining economy. But the Fed chief says he will support an economic stimulus package—be it GOP tax cuts or Democrats' increased spending—as long as it is quick and temporary, the New York Times reports. Lawmakers are scrambling to devise ways to ward off a recession, and Bernanke testifies before a House panel tomorrow.
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MARKETS
Some wonder if Fed might offer rate cut before month's end
Wall Street Journal Jan 16, 08 3:42 PM CST
(Newser)
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Stocks ended slightly down today partly in response to falling oil prices, which could provide a possible jump-start for consumer spending, the Wall Street Journal reports. "Considering that oil was near $100 not too long ago, this is a big move," one trader said. The Dow ended down 34.95 to 12,466.16, the Nasdaq 23.00 to 2,394.59, and the S&P 7.75 to 1,373.20.
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Disappointing holiday sales fuel slowdown verging on recession
Bloomberg Jan 16, 08 2:34 PM CST
(Newser)
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The Federal Reserve's regional business survey—released today, ahead of chief Ben Bernanke's appearance tomorrow before Congress—shows economic activity increasing more slowly, thanks to "disappointing" holiday sales. Some analysts think the survey—nicknamed the Beige Book—is evidence for a general economic slowdown, reports Bloomberg. "We are pretty much on the knife's edge'' of a recession, says one economist.
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