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U.S. Economy Is Uncertain |
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Federal Reserve
Chairman Ben Bernanke said on Tuesday that, "A weakening housing
market, a strained banking system and rising oil prices threaten
the U. S. economy."
The head of
the Central Bank told congress that financial markets had grown
increasingly anxious in recent weeks, particularly over the
financial condition of mortgage finance companies, Fannie Mae
and Freddie Mac.
The
slumping housing market is the most critical and central issue
that faces the economy, because it holds the key to consumer
spending as well as the banks’ financial health.
President
Bush said the economy was still growing, although he
acknowledged, "obvious financial uncertainty."
General
Motors Corporation, struggling with declining sales, announced
it will cut 20 percent of
its salaried work force, while Kimberly-Clark cut its profits
outlook because of rising energy prices.
Helping the
financial markets to return to more normal functioning will
continue to be a top priority for the Federal Reserve Bank. |
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