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 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.