Markets rise but slowdown concern remains

Renewed concerns about a US economic slowdown brought a jubilant market down with a thud in late February only to be resuscitated by the Federal Reserve Board's softer tone at their late March meeting. Inflation risks, particularly wages and gasoline prices, remain a concern. However, with restructuring at the three major US auto companies adding to the slowdown in residential construction and with US GDP having decelerated from a 3%+ run rate to 2.25% in the second half and a preliminary estimate for first quarter US GDP of 1.3%, the Fed now has to be wary of being too restrictive. The goo...