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Moskow Comments Spur Fed Debate

Signs of a slowing economy plus some risk of recession has many economists wondering if the Fed will be forces to cut rates soon than later.

In our exclusive interview on cnbc.com earlier today-Chicago Fed President Michael Moskow said he thought the focus was on the U.S. housing sector--and to some extent autos as well--and if those slowing sectors will spill into other areas.

So what will the Fed do? Raise or lower interest rates?

Brian Bethune is a U.S. economist with Global Insight. He thinks the economy is slowing down to the point where the Fed could think about cutting rates. He cites housing and autos--just as Moskow did--and says there's a slow down in retail as well--and the spill over is already happening.

But Senior Economist Michael Gregory says--the Fed probably won't cut rates any time soon--as they've more than likely figured in a slowing U.S. economy in their recent thinking. Gregory is from BMO Nesbitt Burns.

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