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Confidence in the economy has taken a trip south since six months ago when Treasury & Risk’s Biannual Economic Survey found senior financial executives feeling bleak. Recession, inflation and the price of oil and other commodities top the list of concerns for the 170 executives responding this time around. A whopping 80% expect the Fed funds rate to rise 25 to more than 50 basis points in the next 12 months; 78% say 2008 will go down as the year when recession hit the U.S.; and 62% say that the economy will be affected by as many negatives as positives in the next 12 months, compared to 49 percent six months ago. On the bright side 54 percent see the worst of the subprime crisis as over. Six months ago only 32% said so. They were right. More survey results can be found at www.treasuryandrisk.com

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