1. Second, Fed officials want to avoid a move that could turn out to be unneeded and slow the economy too much. 2. Also, recent weather, including heavy snowfalls, may have slowed the economy temporarily, he said. 3. American consumers have so far remained relatively optimistic as the economy has slowed, and there were concerns that they would pull back, further slowing the economy. 4. Analysts said the market was led down by concerns that higher interest rates and a strong dollar could slow the economy and weaken corporate earnings. 5. Analysts speculate that economic data coming out this week will be strong, and that will mean interest rates will have to go higher to slow the economy. 6. An increase in rates makes it more expensive for companies to borrow and tends to slow the economy. 7. An impending water shortage in Manila triggered concern it may slow an economy already wobbling from high interest rates, analysts said. 8. An interest rate increase also makes the cost of borrowing more expensive for businesses, which would likely slow the economy. 9. Analysts said this was good for the market because it suggests that rising interest rates have slowed the economy and made it less likely that inflation will accelerate. 10. Analysts said the Fed is more likely to cut interest rates after President Bill Clinton and Republicans agree on less spending, which might slow the U.S. economy. |