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Weekly Economic Update|Week of April 21, 2008 Episode
The bevy of reports released last week along with surging financial markets, provided a few positive signals among otherwise negative news. Oil and gas prices continue to strain the consumer's budget as indicated by the jump in sales at gasoline stations which boosted overall retail sales in March. Additionally, both consumer and producer price indices increased at a faster pace than their core counterparts in March because of rising energy costs. The detrimental effect of energy prices may be even more evident in April as oil prices set a high of $116.75 a barrel last week. The stock market soared last week despite the emphasis on rising oil prices. Led by strong earnings reports from financial and technology companies, each of the three major stock indices advanced by more than 4%. With the economy most likely in a recession, analysts expect the Federal Open Market Committee (FOMC) to lower the federal funds rate target at their next meeting on April 29/30.
[ Mon, 21 Apr 2008 00:00:00 GMT ]
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