The surprise Federal Reserve rate cut last week and the apparent agreement on a stimulus package helped brighten the outlook for the economy and financial markets, but it may be too late to avert recession. Standard Poor's has revised its forecast to include the new stimulus package and the quicker Fed rate cut. We now expect the Fed to cut rates to 2.5% by spring. Economic releases included
Sales of existing homes fell 2.2% to 5.89 million in December.
The Congressional Budget Office projected a $219 billion deficit for fiscal 2008. However, when the costs of Iraq another $30 billion and the stimulus package are added, the deficit will be near the 2004 record of...
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