dilemma

Detroit's doing all it can about drooping car sales, including plans for new fuel-efficient and smaller models.

We ask an industry analyst what happens if consumer preferences swing back to big.

Federal Reserve Chairman Ben Bernanke talked about the risks posed by both further economic weakness as well as inflation in testimony to Congress last month.

Today's report that inflation at the consumer level shot up more than 1% last month, due mostly to skyrocketing energy prices, puts the Federal Reserve in a tough spot.

Jeff Tyler explains.

The Fed's next move could determine how the US economic downtown plays out. But there are no good options, and the best strategy wouldn't be easy in an election year.