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Wall Street pulls back on Bernanke remark
www.chinaview.cn 2007-06-06 05:06:33
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    NEW YORK, June 5 (Xinhua) -- Wall Street pulled back Tuesday as Federal Reserve Chairman Ben Bernanke comments gave little signal on interest rates cut.

    During a speech to an international monetary conference in South Africa, Bernanke said the economy will recover from its recent feeble performance, despite a housing slump.

    The inflation was "ebbing" but remains "somewhat elevated," added the chairman.

    Meanwhile a strong reading on the service sector suggested the central bank has no reason to lower interest rates.

    A report from the Institute for Supply Management on the service sector in May showed that the non-manufacturing index came in at 59.7, up from a reading of 56.0 in April.

    The Dow fell 80.86, or 0.59 percent, to 13,595.46, after earlier falling more than 100 points. The Standard & Poor's 500 index fell 8.23, or 0.53 percent, to 1,530.95, while the Nasdaq composite index shed 7.06, or 0.27 percent, to 2,611.23.

Editor: Yan Liang
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