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Friday, November 09, 2007

Fed Chief Warns of Worse Times in the Economy - New York Times

Fed Chief Warns of Worse Times in the Economy - New York Times: "Mr. Bernanke offered a rocky outlook for the months ahead. He said the battered housing market had yet to hit bottom, that delinquencies and foreclosures were likely to rise and that the depression in home-building was “likely to intensify.”

He predicted that personal spending would advance more slowly, because consumers were less confident and because of tighter credit conditions. On top of all that, he said, “further sharp increases in crude oil prices have put renewed upward pressure on inflation and may impose further restraint on economic activity.”

Oil traded just above $95 a barrel on Thursday, down slightly from the day before but still near its recent record highs. Despite all these worrying signs, Mr. Bernanke noted that the economic data since the Fed reduced interest rates last week “continued to suggest that the overall economy remained resilient in recent months.”
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