Slow Holiday Sales Could Lower Rates

Compiled From Wire Services

A second straight weekend of lackluster Christmas sales is increasing the likelihood the Federal Reserve will cut interest rates at a Dec. 19 meeting to pump up a U.S. economy that’s showing signs of fatigue, analysts said.

“The malls were barely more busy than you would expect on an ordinary Sunday,” said retail consultant Kurt Barnard, who surveyed several New Jersey malls over the weekend. “The sales people were congregating.”

News of the slow holiday sales helped send the yield on the benchmark 30-year U.S. Treasury bond down Monday to 6.0 percent, the first time it’s been that low since October 1993.

Federal Reserve Vice Chairman Alan Blinder said last week a reduction in the federal funds rate on overnight bank loans from the present 5.75 percent may be needed to get the economy growing again.

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