Prices In USA Fall At Record Pace

Tuesday's report from the Labor Department says the consumer price index dropped by 1.7 percent for the month.

Economists say the credit crisis helped cut demand for goods and pushed down prices.

A separate report says the number of new homes under construction fell by a record amount in November - a nearly 19-percent plunge.

The grim economic reports are among the issues being discussed by top officials of the U.S. central bank Tuesday as they consider interest rate policies.

Many economists expect the U.S. Federal Reserve to cut the key interest rate, a move intended to boost the economy by making it cheaper to borrow money to expand businesses and make purchases.

The Fed is expected to announce other efforts to aid the economy. These might include purchasing large amounts of U.S. government bonds, which would have the effect of putting more cash into the economy and encourage lending.

Some information for this report was provided by AFP, AP and Reuters.