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Article: Why gloom permeates many cubicles on Wall Street: Tight Fed policy and uncertainty about New Economy even revive talk of the 'R' word - recession.(USA)
- Article from:
- The Christian Science Monitor
- Article date:
- May 24, 2000
CopyrightCOPYRIGHT 2000 The Christian Science Publishing Society. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The furrows on Wall Street's brow are multiplying.
It's not just that the Federal Reserve raised short-term interest rates another half a percentage point last week and that stock prices have been falling.
There's a growing suspicion that the New Economy, with its handsome productivity gains, will not save either the New or Old Economy from trouble.
"The mood has definitely changed," says Matt Higgins, an international economist with Merrill Lynch, a major investment bank in New York.
The happy glow from the extended bull market has faded. Most economists foresee a modest slowdown in the United States economy. But many see a risk of ...