Business and Finance
FED EFFORTS TO DAMP inflation have had little effect so far. Friday's report that producer prices jumped 1% in February, or at a 12.7% annual rate, alarmed economists and sent financial markets reeling. The surge in prices, which affected a broad range of items, makes it likely the Fed will push up interest rates even further, fueling recession fears.</br></br>The Dow Jones industrials skidded 48.57, or 2%, to 2292.14, the worst drop in nearly a year. Bonds plunged, sending long-term Treasury yields to six-month highs. The dollar surged.</br></br>---</br></br>Adjustable-rate mortgages are reaching four year highs, while fixed-rate loans continue to near 2 1/2-year highs. The increases are starting to generate fear among some consumers and in the housing industry.</br></br>---