October CPI Dips 1 Percent the Largest Monthly Decline
U S consumer prices fell 1 percent in October the largest monthly drop since 1947 while year to year inflation remains 30 percent raising hardship for households. Auto makers seek 25 billion rescue amid bailout stalemate as housing and jobs woes persist.
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Forecast lowered as Fed hints at rate cut
The Federal Reserve cut its economic outlook for current and next year and signaled possible further rate reductions. Officials warned that weak conditions and financial dislocations may limit policy impact while pledging additional easing if needed to support banks and growth.
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Auto industry may consolidate amid global downturn
Nissan Motor Co and Renault SA Chief Executive Carlos Ghosn said at the Los Angeles Auto Show that the ongoing auto industry crisis will force consolidation among carmakers. He cited a weak market and credit crunch as factors threatening U S automakers seeking loans to survive.
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Americans embrace a new frugality across the economy
Americans shift to thriftiness as economic fears reshape shopping habits. Consumers seek discounts, buy used goods, repair rather than replace, clip coupons, and prefer store brands. Walmart gains while Saks and Abercrombie struggle.
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