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Any upcoming Fed rate action won't work big economic magic, because corporate credit problems and dipping consumer confidence are burdens not easily overcome, he says.
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After plunging in September and October and dipping in November, consumer confidence recovered strongly in December.
The first signs of a dip in consumer confidence have already emerged.
In the bond market, prices rallied as the dip in consumer confidence and subdued wholesale prices pointed to contained inflation.
Retailers, which have suffered on concerns that a dip in consumer confidence and the slowing economy would hamper holiday sales, were mixed.
In a conference call with Wall Street analysts on Wednesday, Mr. Schultz said the new cuts were necessary because of the unprecedented dip in consumer confidence and the rapid weakening of the economy "by virtually all statistical measures".
However, it was representative of what has been a tough year for British businesses trying to deal with rising costs in the midst of a dip in consumer confidence following the Brexit vote.
Yet judging by the rate at which these forecasts have had to be revised upwards in recent months, it will be no surprise if come 2012, the growth rate turns out to be above the long-term trend after all.Clearly, that will depend in part on whether the recent dip in consumer confidence in developed economies continues (this is somewhat likely).
A dip in consumer confidence had limited impact on the market, according to traders.
In February, as the unemployment rate dipped below 9percentt, consumer confidence reached a three-year high.
A dip in US consumer confidence pushed Wall Street lower by the time London closed.
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