Solid sales ease recession jitters

U.S. retail sales rose solidly in September while inflation pressures were largely muted, according to data on Friday that eased recession fears and suggested further interest rates cuts may not be needed.

The show of consumer spending power in the face of a slumping housing market and tighter credit conditions gave a lift to stocks prices and to the value of the dollar.

Bond prices fell as traders saw the data reducing chances that the Federal Reserve, which lowered borrowing costs in September, would do so again at a meeting at end of the month. (Read more…)

Source: Reuters