|
|
 |
|
 |
|
| CPI REMAINS STEADY | |
 November 17, 1999 
|
||
|
|
Though the Federal Reserve raised interest rates Tuesday for fears of inflation, the Labor Department announced today prices are under control at the consumer level.
|
|
In October, consumer prices rose just two-tenths of a percent, the smallest increase in four months. And the price of gasoline and other energy fell. Economists say this news means the U.S. economy is in check for now. "Things appear to still be pretty steady in the consumer arena for prices," Robert Brusca, an economist at Ecobest Consulting in New York, told Reuters Television. During its rate hike announcement yesterday, the Fed acknowledged that costs have remained steady despite strong growth and a buoyant stock market. But the board fears the country's labor pool could become stretched too thin if the economic steam keeps building. Blue chip stocks opened mixed Wednesday, as investors grapple with the various economic indicators. On the Nasdaq exchange, technology stocks continued their record rally of Tuesday afternoon to new heights, until a late morning retreat. Internet ticketseller Priceline.com was up about seven points in early trading after an announcement that it would add three major airlines -- United, American and US Air -- to its airfare bidding service.
They say Wednesday the CPI numbers are in line with that bias. Bonds are not faring as well following the two announcements. The U.S. Treasury 30-year bond was down 23/32 to yield 6.11 percent.
|
 |
||||||||||||||||||
| |||||
 | |||||
| |||||
|
|
| |||
| |||||
| |||||
| Support the kind of journalism done by the NewsHour...Become a member of your local PBS station. | |||||
Many
investors were encouraged by the Fed's Tuesday decision of moving to
a "neutral bias," saying chairman Alan Greenspan is trying
to promote long-term, steady growth of the economy without inflation.
