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Reuters – ‘Recession Looms, Doves Cry’

From an ever-hopeful Reuters:

Fed to slash rates as recession looms

By Ros Krasny – Sun Oct 26,

CHICAGO (Reuters) – The U.S. Federal Reserve is expected to cut lending rates at a two-day policy meeting this week in response to unprecedented turmoil in financial markets and the threat of a global recession.

The consensus among Fed watchers is for a half-point cut in overnight rates to 1 percent, which would be the lowest level since June 2004. The central bank is also expected to signal a willingness to lower borrowing costs again if needed — especially with inflation pressures fading fast…

Fed Chairman Ben Bernanke and his colleagues, who gather on Tuesday and Wednesday, have already cut the benchmark federal funds rate to 1.5 percent from 5.25 percent over the past 13 months. They will announce their latest decision around 2:15 p.m. EDT (1815 GMT) on Wednesday…


A Reuters poll on October 16 showed economists predicting the U.S. economy would contract for three straight quarters, beginning with the third quarter that ended last month. Such a streak of declining gross domestic product would be the longest since 1974-75

The U.S. labor market has shed jobs for nine consecutive months with no end in sight, while industrial output nosedived in September and consumer confidence has cratered, taking retail demand down.

The Institute for Supply Management’s index of factory activity fell in September to 43.5, far into territory associated with recession, and regional indexes have suggested manufacturing activity has fallen further this month…

It is nevertheless confusing to hear that recession is “looming” when Reuters has been assuring us that we have been in a recession for many months now.

Still, they’re bound to be right someday.

“When doves cry.” — This is journalism?

This article was posted by Steve on Sunday, October 26th, 2008. Comments are currently closed.

One Response to “Reuters – ‘Recession Looms, Doves Cry’”

  1. BillK says:

    I have no doubt they’ll be right.

    Nothing will spur a faster contraction in the economy than the election of Obama as the “wealthy” stop spending to sock away their money to pay higher taxes.

    Say goodbye to all future spending on cars, clothing and housing except al Wal-Mart, whose products are already largely made overseas.

    We’ll see just how many businesses can be kept alive with the liberals’ “bottom up” economic theory, especially when the labor costs for said products will be $40/hour due to Federal mandates.

    Here’s a little test for idiots.

    Who has the money to spend $40,000 on a pair of stereo speakers as opposed to $400?

    Pay $400 for a pair of speakers and they’re made in China.

    Pay $40,000 and they’re made in Utah.

    Silly me.

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