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Weekly Economic Update|Week of April 14, 2008 Episode
Reports released last week gave only slight support for an economy in turmoil, but evidence could be found elsewhere. General Electric (GE), often considered a bellwether for the overall economy, was unexpectedly forced to cut its earnings forecast last Friday citing recent market turmoil and the Bear Stearns situation as reasons for the cut. When news of this reached investors, the price of GE stock plummeted as much as 13%, wiping out $46 billion in market value. Additionally, the March 19 minutes of the Federal Open Market Committee's (FOMC) meeting released last week were beleaguered with downbeat indications of the economy's health noting a deceleration in economic activity and a softening labor market. In one of only a few economic reports released last week, the trade deficit widened to $62.3 billion as exports, which have been a major contributor to economic growth, were outpaced by imports. The financial markets did not fare well last week as stock markets tumbled, oil prices surged, and the dollar weakened. Most analysts expect the FOMC to lower the federal funds rate target at their next meeting on April 29/30.
[ Mon, 14 Apr 2008 00:00:00 GMT ]
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