Exact(4)
But with growth falling short of the Fed's forecast, inflation expectations still declining, wages and consumer spending stagnant, housing markets weakening, manufacturing growth petering out, and stimulus ending, "not tightening" just might not cut it.
A weakening manufacturing sector.
A weakening manufacturing sector and expectations of a third consecutive decline in employment this month suggest the economy has yet to revive from its Iraq war slump.
Members of the Fed's Federal Open Market Committee, in cutting their key overnight bank lending rate to 5.50percentt, cited eroding consumer and business confidence, weakening manufacturing and higher energy costs.
Similar(55)
It will take a comprehensive approach to resolve the core issues that have weakened manufacturing: onerous government policies and insufficient research, the strength of the workforce and further partnerships between universities and industry.
But the picture remains grim in other sections, with retail sales down in the Midwest, loan demand falling in New York, commercial real estate weakening and manufacturing activity stumbling in many regions.
An initial 2% cut was followed by further devaluations until figures showing a 8.3% decline in exports were followed by a survey that pointed to a further weakening in manufacturing output growth Analysts at Investec Economics said: "It will be all eyes on the Chinese authorities for any further policy support steps, alongside the People's Bank of China yuan fixings and trading swings".
The problem with this strategy is that it guarantees the long run secular decline of the American economy, which will come as an inevitable result of a further erosion of America's already weakened manufacturing base.
Around the States: Manufacturing Is Improving Chicago (pdf) activity weakened but manufacturing in Kansas City (pdf), Texas and the Midwest (pdf) all increased in August.
A preliminary version of a separate purchasing managers index by the HSBC Corporation also showed August manufacturing weakening, falling to 47.8 points from 49.3 in July.
But in a replay of the previous two years, the economy appears to have hit a speed bump at the end of the quarter, with data ranging from employment to retail sales and manufacturing weakening significantly in March.
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