Iraq war rattles economy

Fed may have to reverse plans to accommodate downshift

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The oil equation broke from pattern this week: prices fell, stocks rose, but interest rates fell slightly, as evidence of a flattening economy dominated energy-price relief. Mortgages are still close to 5.75 percent, and the 10-year T-note yield is trading in cheerful economic pessimism, back down to 4.2 percent.

The bond market had waited all week for Federal Reserve Chairman Alan Greenspan’s address this morning at an annual convention of central bankers in Jackson Hole, Wyo.