Ominous Signs at the Periphery VI

From April 15

The mosaic I've been painting is starting to become clearer as time goes on. Look for the FED to be forced to quit hiking rates causing the dollar to begin ANOTHER down draft along w/ the stock market. If the housing market FINALLY bursts, its all over. I'll keep you updated..D

N.Y. manufacturing hits 2-year low

New York Fed index tumbles in April; rising oil pushes import prices up at fastest rate in 2 years.
April 15, 2005: 9:45 AM EDT

WASHINGTON (Reuters) - An index of New York manufacturing conditions fell to a two-year low in April, while rising oil costs pushed U.S. import prices up at their fastest pace in more than two years.

The Federal Reserve Bank of New York said Friday the general business conditions index of its Empire Manufacturing Survey tumbled to 3.1 in April from a revised 20.2 in March, sharply below the consensus forecast of 19.

Treasury bond prices rose after the Fed survey, sending long-term bond yields lower, as investors bet the Fed will not need to speed up interest rate increases to head off inflation. The New York Fed is one the Fed's regional banks.

Separately, the Labor Department said U.S. import prices rose 1.8 percent in March, the biggest increase since January 2003.

Excluding a 10.6 percent jump in the cost of imported petroleum, import prices increased 0.3 percent.

Wall Street economists had expected import prices to rise 1.2 percent in March. Export prices rose 0.7 percent, more than double the expected 0.3 percent gain.

Over the past 12 months import prices have climbed a steep 7.1 percent, reflecting a 36.1 percent surge in the cost of petroleum that has stirred concerns over both inflation and a potential weakening in economic growth.