StockOrder
Joined: 28 Apr 2006
Posts: 12
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 Posted: Thu Nov 20, 2008 4:07 am Post subject: Deflation looms as US consumer prices fall |
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IMO, it was just a matter of time.
| Quote: | US authorities are now warning of the risk of deflation which would further deepen and prolong a recession, after consumer prices plunged by 1% in October, their biggest plunge in 61 years and housing starts fell again, to a level not seen since 1959.
Speaking at the Cato Institute yesterday deputy Federal Reserve Chair, Donald Kohn said "I think there is a risk of deflation, but it is small. I think it more likely that we will get a couple of quarters of negative growth and inflation moderating."
But the latest figures released today show just how steep the slowdown is in the US, with consumers slamming shut their wallets and retailers discounting sharply to try and grab a share of the Christmas spending.
The Federal Open Markets Committee released its minutes of its last meeting in late October at 2pm US time, sending the already nervous stock market down further. The Standard and Poors index is expected to close to 3% off their opening highs.
Read more here: http://business.theage.com.au/business/world-business/deflation-looms-as-us-consumer-prices-fall-20081120-6bra.html
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