Media Buyers Get Jitters About Possible Recession
November 9, 2007 12:59 PM
Federal Reserve chairman Ben Bernanke spooked everyone yesterday when he said he expects U.S. economic growth to slow noticeably over the next several months as more bad news emerged from housing, energy, the weakening dollar and low retail sales.
And despite all the bad news Bernanke said that the Federal Reserve does not expect to cut interest rates again during its December 11 policy meeting. The Fed had already cut rates twice in September and October.
The jitters are now spreading from Wall Street to Madison Avenue after agency media buying firms witnessed yet another tumultuous day in the stock market today. In other words, the dip in retail for this holiday season could result in an unexpected drop in TV ad spending.
Chew a Maalox over this nugget: This past October retail posted its lowest sales in 12 years, an ominous sign of things to come. So should the Fed drop rates again? I say yes.