From the wires

According to reprots, the Federal Reserve is calling the economic growth outlook "unusually uncertain." Minutes of a December 11th Fed meeting show the central bank staff now expects the economy to grow "noticeably below its potential in 2008". This is a result of high oil prices, lower incomes, a deteriorating housing market and constricted credit markets take a toll.


Credit card and auto loan delinquency rates have been rising. The commercial real estate bond market is showing "deterioration," the Fed said. "Strains in financial markets … could persist for quite some time," the Fed said, adding that the housing slump looked "deeper and more prolonged" than expected.

According to USA Today, the unemployment rate jumped from 4.7 percent in November to 5 percent in December, the highest since November 2005 after the Gulf Coast hurricanes dealt the country a mighty blow. Total payrolls — both private employers and government — grew by just 18,000 last month, the worst showing since August 2003, when the economy suffered job losses as it struggled to recover from the 2001 recession.

Some of the top news wires are reporting fears of a possible recession.
According to the AFP, the US economy succumbed to housing and credit troubles in December as just 18,000 jobs were added and the unemployment rate rose to 5.0 percent, data showed Friday, highlighting fears of recession.