Imagine this scenario. A key economic report is unexpectedly weak.
People turn much gloomier about the outlook.
All look to the central bank for fast rate-cutting to stave off a recession. But those policymakers have to reply, sorry, our hands are tied by an inflation rule. Worldwide economic slowing is weighing on the international financial system, a development that highlights the need for prudent financial regulation, Federal Reserve Bank of New York President William McDonough said Thursday. The services sector of the U.S. economy will weaken further in the coming months ahead, causing more job cuts in an area of the economy which so far has skirted a deeper slowdown seen in the industrial sector, a top services sector economist said on Thursday. After four consecutive days of strong gains, the market suffered a bout of profit-taking, virtually across the board.