Goldman Sachs drew some undeserved ire when it recently pointed to proposed cuts in federal spending as a key near-term risk. While the proposed cuts are modest, they could still undermine the rebound at a critical time.
The Consumer Price Index fell 0.1% in June, but the core rate rose a higher-than-expected 0.2%, which suggests that the slowing U.S. economic recovery has lowered inflation. But it hasn't triggered deflation -- at least not yet.
Portugal, one of the countries at the heart of the European debt crisis, had its bonds downgraded by Moody's Tuesday. The ratings agency warned that the Lisbon government's financial strength will continue to weaken because of heavy debt.