Will the Fed hike again or not? Fed officials' opinions differ, as Reuters reports.
Two veteran Federal Reserve officials gave different readings on the likely course of interest rate policy on Tuesday -- but only one will be around after the next meeting to implement those views.
Chicago Federal Reserve Bank President Michael Moskow said unequivocally that inflation remains a bigger threat to the U.S. economy than slowing growth, and the central bank might need to raise interest rates again.
By contrast, the soon-to-retire Atlanta Fed Bank President Jack Guynn said U.S. monetary policy was "properly calibrated" and expressed confidence that inflation was going to slow, as the Fed's own forecasts have predicted.
Meanwhile, signs of a slowdown appear to be spreading elsewhere. While Japan's all-industry index managed to eke out a 0.1 percent rise in June, the reports from Europe yesterday did not look good.
Bloomberg reports that German investor sentiment plunged in August.
German investor confidence plunged to a five-year low in August on concern rising interest rates and taxes will hamper growth in Europe's largest economy.
The ZEW Center for European Economic Research index of institutional and analyst expectations dropped to minus 5.6, the lowest since June 2001, from 15.1 in July, the institute said in Mannheim today. Economists expected a decline to 11.4, the median of 42 forecasts in a Bloomberg News survey showed.
Eurostat reports a fall in industrial new orders in Europe.
The euro area industrial new orders index fell by 2.5% in June 2006 compared to May 2006. The index increased by 2.7% in May and decreased by 0.8% in April. EU25 new orders dropped by 1.2% in June 2006, after rising 2.0% in May and remaining stable in April. Excluding ships, railway and aerospace equipment industrial new orders fell by 2.1% in the euro area and by 1.2% in the EU25 in June 2006.