WORLD> America
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WORLD> America
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US employers cut jobs by most in more than 5 years
(Agencies)
Updated: 2008-10-03 22:01 All the economic and financial fallout has put more pressure on the Federal Reserve to reverse course and cut a key interest rate again on or before its late October meeting. The Fed halted its rate-cutting campaign in June out of fear it was aggravating inflation. Since then, it has opted to hold rates steady. Some analysts believe the conditions have eroded enough to warrant another rate reduction in an effort to revive the economy. The financial crisis intensified in September, forcing a seismic shake-up on Wall Street. Lehman Brothers, the country's fourth-largest investment bank, filed for bankruptcy protection. A weakened Merrill Lynch, deciding it couldn't go it alone anymore, found help in the arms of Bank of America. AIG was thrown a financial lifeline. And, the last two investment houses - Goldman Sachs and Morgan Stanley - decided to convert themselves into commercial banks to better weather the financial storms. The number of banks that have failed this year are up sharply from last year. On Friday, Wachovia Corp. said it will be acquired by Wells Fargo & Co. in a $15.1 billion all-stock deal, wiping out Wachovia's previous plan to sell its banking operations to rival suitor Citigroup Inc. |
