Fed faces tough decisions on rates today
THE Federal Reserve will come under pressure not to raise interest rates when it meets today, following further deterioration in both consumer outlook and the US housing market.
US consumer confidence fell to a 16-year low in June while inflation expectations held at their recent record high, figures yesterday revealed.
Consumer evaluations of future prospects also hit a record low, the Conference Board said.
House prices in the US continued their record slide in April, with many areas showing double-digit declines, according to the closely watched Standard & Poor's/Case Shiller home price index.
The news fanned worries about stagflationary conditions of low growth and high inflation in the US economy and heightens the dilemma facing the Federal Reserve when it meets today to set US interest rates.
Dana Saporta, an economist at Dresdner Kleinwort Securities, said the latest figures showed consumers were not about to increase their spending.
The full article contains 157 words and appears in The Scotsman newspaper.
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Last Updated:
24 June 2008 9:29 PM
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Source:
The Scotsman
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Location:
Edinburgh
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Related Topics:
Interest rates
