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 The Fed this week lowered interest rates and announced a plan to align with other key central banks and offer liquidity to pressed lenders around the world. But while it wants to stimulate the U.S. economy and make lending easier among banks wary of faltering debt, the Fed also has to keep a watchful eye on inflation.
Before the market opens Friday, investors are due to receive the November consumer price index. A rise in consumer prices like the one revealed Thursday among wholesalers could complicate the Fed's plans.
Stocks finished mixed Thursday after wholesale inflation showed its biggest jump in 34 years. Besides the report on consumer prices, investors are also awaiting a read on industrial production for last month.
But beyond economic reports, corporate news weighed on investors. Citigroup Inc. said late Thursday it plans to move assets from seven "structured investment vehicles" onto its books and put up $49 billion to help the SIVs repay their debts. The bank had said it had no plans to bring the SIVs onto its books.
SIVs are complex investments set up by banks and sold to investors. They have loomed large on Wall Street in recent months as investors developed a distaste for mortgage investments and other now-risky debt. The resulting drop in demand hurt the value of the SIVs.
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 Moody's Investors Service lowered its rating on Citi's long-term debt.
The concerns about inflation and the latest flare-up in the credit markets weighed on stock market futures.
Dow Jones industrial average futures fell 58, or 0.43 percent, to 13,540. Standard & Poor's 500 index futures fell 6.80, or 0.45 percent, to 1,491.70, and Nasdaq 100 index futures fell 5.25, or 0.25 percent, to 2,108.75.
The dollar was mixed against other major currencies, while gold prices fell.
Light, sweet crude rose 72 cents to $92.97 per barrel in electronic trading on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average slipped 0.14 percent. Britain's FTSE 100 rose 0.05 percent, Germany's DAX index rose 0.03 percent and France's CAC-40 fell 0.38 percent.
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On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
[Associated Press; By TIM PARADIS]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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