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發表於 2007-8-7 22:33:18
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Stocks Pull Back Ahead of Fed Decision
Wall Street pulled back in early trading Tuesday as investors, uneasy before the Federal
Reserve's meeting during the afternoon, cashed in some of their gains from Monday's big
advance.
The August meeting of the Fed's Open Market Committee, which sets short-term interest
rates, follows two weeks of volatile stock trading. Investors have been uneasy about the
availability of credit, and the health of subprime loans made to borrowers with weak credit.
While observers don't expect the Fed will move the benchmark rate from 5.25 percent, where
it has been since last summer, many will be looking to the central bank's
economic policy statement for comments about the lending concerns that have prompted big swings in stocks and bonds.
Wall Street was also digesting a Labor Department report that found the productivity of U.S.
workers rose to a 1.8 percent annual rate in the spring -- more than double the 0.7 percent
pace of the first quarter -- while wage pressures lessened.
Unit labor costs rose at a 2.1 percent pace, which was the second straight quarter in which
wage pressures have cooled. A drop in wage pressures could help assuage (alleviate) some of
the Fed's concerns about inflation. |
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