WASHINGTON — A sagging consumer confidence report Tuesday looks to be the first in a series of disappointing economic releases that could shake Wall Street and push the Federal Reserve to cut interest rates next week.
A consumer confidence index plunged to 79.4 this month, according to a monthly survey of 5,000 households by the Conference Board. The focus now turns to Friday, when analysts expect more bad news in reports on unemployment and manufacturing. If they’re right, the data from this week and last week would confirm a weakening economic recovery.
The dilemma facing the Fed will be whether to cut interest rates to try to stave off a possible recession or to do nothing and assume the economy is strong enough to bounce back on its own.
— Ken Moritsugu, Knight
Ridder Newspapers (KRT)