NEW YORK — A build-up of bearish data fuelled fears of a US economic slowdown on Tuesday as consumer confidence slumped to a two-year low and house prices in big cities suffered their biggest drop in 16 years. The growing evidence that the credit squeeze and housing meltdown are spreading to the rest of the domestic economy will increase pressure on the Federal Reserve to set aside concerns over rising inflation and cut interest rates on Wednesday. Blue chips such as Procter & Gamble and US Steel added to the gloom with results that disappointed investors and contributed to a 0.7 per cent fall in the S&P€°500 by the close in New York trading. The negative reaction to earnings by two companies with global operations reflects deepening investor concerns that the weak dollar and solid global economic growth might not be enough to help corporate America offset a slowdown. With experts warning that the next few months will bring more bad news from consumers and the housing market, investors will be looking to the monetary authorities’ decision, and their closely watched comments, to boost sentiment. ‘The housing market, credit problems and high gasoline prices are […]