NewsMine — economy — united-states — 2008-jan-may — Viewing Item

Bernanke tells congress more rate cuts needed { February 14 2008 } Original Source Link: (May no longer be active)    http://news.yahoo.com/s/ap/20080214/ap_on_bi_ge/congress_recession_threat_5 http://news.yahoo.com/s/ap/20080214/ap_on_bi_ge/congress_recession_threat_5 Bernanke: economic outlook worse By JEANNINE AVERSA, AP Economics Writer 56 minutes ago February 14, 2008 WASHINGTON - Federal Reserve Chairman Ben Bernanke is telling Congress the nation's country's economic outlook has deteriorated and is signals the Fed is ready to again lower interest rates to steady things. In prepared remarks to the Senate Banking Committee on Thursday, Bernanke also says the one-two punch of the housing and credit crises has greatly strained the economy. He noted that new hiring has slowed and said that people are likely to tighten their belts further as they are pinched by high energy prices and sagging home values. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below. WASHINGTON (AP) — Fighting to keep the U.S. economy afloat, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson are giving Congress fresh insights into economic and financial conditions greatly strained by the one-two punch of the housing and credit crises. The troubles in the housing and credit markets threaten to push the economy into its first recession since 2001 — if it hasn't fallen into one already. Bernanke, Paulson and Christopher Cox, chairman of the Securities and Exchange Commission, were scheduled to discuss the state of the economy and the nation's financial markets at a Senate Banking Committee Hearing on Thursday. Foreclosures have climbed to record highs, financial companies have racked up multibillion-dollar losses from soured mortgage investments, Wall Street has convulsed, and employers have turned cautious in their hiring. Economic growth practically stalled in the final three months of last year, and some economists believe it may actually be contracting now. By one rough rule of thumb, a recession occurs when there are two consecutive quarters — six straight months — when the economy shrinks. The trio of economic officials testify one day after President Bush signed a $168 billion economic-rescue package into law. The package, passed by Congress last week, includes rebates for most U.S. households and tax breaks for businesses. It also includes provisions to help the ailing housing market and struggling homeowners. The Federal Reserve, which started lowering a key interest rate in September, recently turned much more forceful. Over the span of just eight days in January the Fed slashed rates by 1.25 percentage points — the biggest one-month rate reduction in a quarter-century. Economists and Wall Street investors believe the Fed will cut rates even more at its next meeting in March and probably again in April. They'll be watching Bernanke closely for fresh clues about just how low rates will go. The hope behind the stimulus package and the Fed's rate cuts is that they will induce people and businesses to boost spending and investing, giving a much-needed jolt to the economy. ___ On the Net: Federal Reserve: http://www.federalreserve.gov

10 recession proof cities { May 9 2008 } 7000 stores could close this year { April 30 2008 } Americans increasing delinquent on credit cards { November 2007 } Americans sell posessions to makes ends meet { April 29 2008 } Bearsterns takeover causes economic tumble { March 17 2008 } Bernanke fedrate cut disappoints treasury bulls { December 2008 } Bernanke tells congress more rate cuts needed { February 14 2008 } Buffett says recession may be worse than feared { March 2008 } Consumer confidence falls to 26yr low { March 2008 } Consumer prices increase more than forecast { January 2008 } Dollar falls to record low against euro { March 2008 } Dollar rebounds after euro terror threat { March 19 2008 } Dow drops 370 on service sector news { February 5 2008 } Dow products will have price increase { April 2008 } Fed cuts another half point appeasing markets { December 2008 } Fed expects higher inflation { February 20 2008 } Fed uses depression era tactics { February 2008 } Federal reserve takes risk from risky mortgages { March 12 2008 } Food costs rising fastest in 17 years { March 2008 } Food prices causing world crisis { March 2008 } Global selloff causes fed 3 4 rate cut { January 22 2008 } GM largest loss ever for any auto company { January 2008 } Gold jumps 1000 as dollar plummets { March 13 2008 } Housing slump not reducing inflation { January 2008 } Inflation biggest jump in 26 years { January 15 2008 } January wholesale inflation up { January 2008 } Potential fed rate cuts sends gold to new record { December 2008 } Ron paul blames federal reserve for weak economy { January 22 2008 } Stocks fall on slow projected growth { May 21 2008 } Stocks fell 5perc before rebounding { January 23 2008 } Stocks up when bad housing data suggests cut { January 8 2008 } Teens giving up wasteful excessive spending { April 17 2008 } US living standards drop below britain { January 6 2008 } USA economic measure defines misery { March 12 2008 } Wall street optimistic despite main street { May 2 2008 } Wheat prices since 2002 have biggest gain { January 2008 } World drops again as US anticipates rate cut { December 2008 } Files Listed: 37

Correction/submissions

CIA FOIA Archive

National Security Archives

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information, go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purpose of your own that go beyond 'fair use', you must obtain permission from the copyright owner.