By Ellis Mnyandu
Concerns about the stability of bond insurers were another
headwind after bond insurer XL Capital Assurance, a unit of
Security Capital Assurance
At an event late on Thursday in Honolulu San Francisco Federal Reserve Bank President Janet Yellen indicated a willingness to cut U.S. interest rates further, but she also said she was "not confident" a recession can be avoided this year.
"What is going to cause this recession is psychology. You don't want to foster a negative psychology. People want some source of confidence."
Dow Jones industrial average futures fell 48 points. Nasdaq 100 futures declined 14 points.
The Fed has slashed its benchmark lending rate to 3 percent from 5.25 percent since mid-September as growth prospects have weakened. The cuts included a 75 basis point emergency inter-meeting move on January 22.
(Editing by Kenneth Barry)
