That would get some money into people's pockets. David Wyss disagrees. The Standard and Poor's economist says the Fed shouldn't lower rates until next year. And Congress shouldn't attempt to cut taxes to stimulate growth. That's because Congress can't move quickly.
Republicans see the downturn as proof a tax cut is needed.
With government statistics weakening and many firms reporting poor earnings, economists are lowering forecasts. The consensus of 52 top forecasters taken this month by Blue Chip Economic Indicators is that the economy will grow 3.1 percent after inflation next year. That is down from 3.4 percent a month earlier. While few economists predict an actual recession, they see plenty to worry about. Bank lending has tightened.