Pressure on the US Federal Reserve to cut interest rates intensified today after leading industry figures said they saw no let-up in the slump in the American housing market and suggested the economy was heading into recession, The Times reports.
Angelo Mozilo, chief executive of Countrywide, America's largest mortgage lender, predicted no improvement in the country's housing market, particularly in the sub-prime sector. "I've seen this movie before, and the ending of the movie always ends up in some form of recession," he said in an interview. And Alan Mulally, the chief executive of the car giant Ford, said the Fed's job of managing economic growth was now a particular priority. WORRIES OVER BANK of China's exposure to sub-prime mortgages sent its shares sharply down overnight, according to The Guardian. The shares plun...
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