Growth Wanes; Fed Nears Last Rate Boost: U.S. Economy Preview

[cal04]

Consumer confidence didn't improve much this month and spending stalled in February, adding to evidence of a slowdown in U.S. growth that may make the Federal Reserve's interest rate increase this week one of the last for a while, economists said. Two measures of March consumer confidence to be released this week barely rose from three-month lows, according to the median forecasts of economists surveyed by Bloomberg News.

Consumer spending, which accounts for about 70 percent of the economy, was unchanged in February, the weakest performance in six months, economists forecast a separate report will show. Coming after reports last week that showed new home sales and business investment weakened in February, the data will strengthen the view that the economy is slowing, economists said. Fed policy makers, meeting for the first time under the leadership of Ben S. Bernanke, will pause after raising the target interest rate this week and again in May, said economist Brian Bethune.

``The Federal Reserve is converging on a more appropriate level'' for the target rate, said Bethune, an economist at Global Insight in Lexington, Massachusetts. After its May meeting, ``the Fed will then pause to assess the breadth and depth of the slowdown.'' Confidence as measured by an index from the New York-based Conference Board rose to 102 this month from 101.7 in February, according to the median estimate of economists surveyed by Bloomberg News ahead of March 28 report. Confidence slumped last month as Americans worried about prospects for job and income growth.

Shaky Confidence

The University of Michigan's index of consumer sentiment, due March 31, is projected to rise to 86.9 from 86.7 in February, according to the survey median. Shaky confidence may make it less likely that spending will rebound much this month after stalling in February. Personal spending was unchanged in February after five months of increases, according to the median survey estimate ahead of the Commerce Department's March 31 report. Spending rose 0.9 percent in January.

http://www.bloomberg.com/apps/news?pid=10000087&sid=ajw.Kq6cYeW4&refer=top_world_news

[Warpy]

1. "last rate boost?"

If you believe that, I've got beachfront property to sell you in New Mexico.

The interest rates are going to have to be hiked a lot more to attract foreign central banks as the spendaholic Repuglicans keep driving up the debt ceiling so Georgie can play with his military toys.

You already know they're not going to raise the taxes where they need to, on the people who directly benefit from the bloated military--the rich and the corporate, so raising revenue is out. They'll have to keep borrowing, and for that they need higher returns on the borrowed money to attract lenders.

[Viva_La_Revolution]

2. it brings to mind the scene from War and Peace...while the Russians frolic

and spend, Napoleon is only a few miles away, even the subject of most conversations... yet they continue the lavish parties and empty revelry.

[KAT119]

3. When the dollar wipes out & the banks are closed by WH/BFEE and they print

a new currency - if you wish to have food & water- you work for the new fully militarized USA
- BFEE Dictatorship as a soldier/slave in the Project for a New American Century (PNAC)= Global American Empire! Congress is dissolved - elections are no more- * is Emperor in perpetuity.

As a soldier/slave, you go through out your community collecting the guns & gold for your Commander-in Chief's new form of gov't.

The rest of the world falls in line or they are summarily nuked!

If you resist - you are considered "an eater" (useless) & are dead.

This is a classic Dictatorship scenario for the addiction of Power & Greed - which has no known limits - except REVOLUTION NOW - before it is too late!!

[Odin2005]

4. With the M3 gone, Helicopter Ben's going...

to be sending money printing presses into high gear.