NEW YORK, Dec. 1 (UPI) -- Federal officials reportedly are contemplating an aggressive support effort for the sluggish U.S. economy, leading investors to finally feel some comfort.
Economist Robert Barbera, who works for the brokerage firm ITG, said the fact Federal Reserve officials are eyeing an economic rescue effort has helped diminish investors' nervousness, The New York Times reported Saturday.
"The market now feels comfortable that the Fed has come to appreciate the severity of the situation," Barbera said. "The bad news gives you the blessing of lower interest rates."
The U.S. economy has been steadily slowing as the country's housing market continues to crumble, leading to a growing number of home foreclosures.
Despite reports of possible interest rate cuts from federal officials, some economists have warned citizens such supportive efforts may not be instituted for some time.
The Times said current economic signs nationwide are indicative of a potential decline in company investments, business loans from banks and overall consumer spending.
