With housing slowing down, retail sales not great, and a Fed that has been worried about inflation and raising interest rates when it should be lowering them, a recession isn't far behind. The WSJ reports:
Stocks plummeted Tuesday, with the Dow down as much as 545 after a nearly instantaneous drop of about 200 points right around 3 p.m. Eastern time, but then recovering some of the losses. Indexes declined amid a broad selloff encouraged by a confluence of factors including weakness on the Shanghai market, disappointing durable-goods data and uncertainty increased about Iran and Afghanistan.
Will the Fed lower interest rates when it next meets (March 20/21, 2007)?