Labor department says consumer prices are flat!!! fed can lower rates

[Texan4Life]

And because the of this the fed says it gives it the opportunity to lower rates more!!

http://www.bloomberg.com/apps/news?p...uc0&refer=home

Industrial output fell 6 percent in the third quarter, the most since 1991, and a factory index for the Philadelphia region hit an 18-year low this month, Federal Reserve figures showed today. The Labor Department reported that for the first time in two years consumer prices didn't increase for two straight months.

Today's numbers give the Fed scope to lower interest rates again this month. Stocks slid and interest-rate futures showed rising expectations of a half-point cut in the Fed's benchmark to 1 percent.

consumer prices down my ass. pure bull$#@!. They are cooking the books hardcore now.

[Zippyjuan]

I have seen gas and food prices decreasing in my area. Not major drops but down from their highs. The price of oil has come down by a significant amount from its highs and that lowers the costs of everything which needs to be shipped (which is basically everything we consume).

But I do not think any Fed rate cut will make any difference in the economy right now.