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Sunday, September 2, 2007

Economists Abuzz on Interest Rates : would go down or not?

A growing number of economists predict the Fed will be forced to lower its key rate this year. Others say it isn't a sure thing.

The fear is that if credit continues to become harder for people and businesses to get, spending and investment will be crimped. That could hurt overall economic growth. In a worst-case scenario, the country could slide into a recession.

Credit is the economy's lifeblood. It lets people make big-ticket purchases such as homes and cars and can help businesses bankroll expansions and other things that can boost hiring.

Some economists put the odds of a recession this year at one in three.

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