The nation’s economy failed to pick up speed in August and the final days of July, as rising prices and a weak job market prompted consumers to reduce spending and shop at discount stores to try to conserve cash.

Economic activity stayed “weak, soft or subdued” across the country, according to the Federal Reserve Bank’s beige book, a regular snapshot of the economy. The latest edition of the survey, released on Wednesday, signaled that the economy spent the summer in a rut, with consumers feeling little relief from the government’s tax rebates.

Fannie Mae Chief Executive Officer Daniel Mudd replaced three top deputies in an effort to restore investor confidence after record losses and a 90 percent drop in the shares.

Chief Financial Officer Stephen Swad, 47, hired less than two years ago to help the government-chartered company complete an accounting overhaul, will be replaced by Controller David Hisey, 48. Chief Business Officer Robert Levin, 52, and the head of risk management, Enrico Dallavecchia, 46, will also leave, Washington-based Fannie said in a statement yesterday.

Federal Reserve policy makers expect to eventually raise their benchmark interest rate in an effort to slow inflation, but they have not agreed to a timetable for the move, according to minutes of the Fed’s last meeting in early August.

Commodities headed for their biggest weekly gain in 33 years as oil traded near its highest for more than two weeks and a weakening dollar revived demand for raw materials as alternative assets.

The Reuters/Jefferies CRB Index of 19 commodities soared 3.7 percent to 405.92 in New York yesterday. A settlement at that level today would mark a 6.2 percent gain for the week, the most since July 1975. The dollar headed for its first weekly decline against the euro since July 11, while oil climbed past $121 a barrel after jumping more than $5 yesterday.

The dollar fell against the yen on speculation a manufacturing industry contraction and credit- market losses will prompt the Federal Reserve to hold off from raising interest rates.

The U.S. currency also slid against the euro on concern futures traders will pare bets on gains in the dollar, which has gained against all 16 of the most-active currencies this month. The Australian and New Zealand dollars rose as commodity prices rallied for a third day, helping boost the value of the two nations' exports.

Stocks fell sharply on an otherwise quiet Monday as jitters about the mortgage industry prevailed in low-volume trading, sending shares of Fannie Mae and Freddie Mac to 17-year lows.

The Dow Jones industrial average fell 180 points and the broader Standard & Poor’s 500-stock index lost 1.5 percent, as shares of banks and financial services firms took a sharp hit.

The biggest losers were Fannie Mae and Freddie Mac, the beleaguered mortgage giants, which have suffered from widespread concern over their ability to raise capital and continue to guarantee most of the nation’s mortgages.

That catchy slogan, dreamed up by the Fallon Worldwide advertising agency, was pitched in 1999 to executives at Citicorp who were looking for a way to lure Americans to financial products like home equity loans. But some in the room did not like it. They worried the phrase would encourage people to live exorbitantly, says Stephen A. Cone, a top Citi marketer at the time.

Asian stocks fell, led by financial companies, after condominium builder Urban Corp. filed for bankruptcy and Merrill Lynch & Co. said the credit crisis isn't over. Commodity producers gained after oil and metal prices rose.

Crude oil fell to $118 a barrel on speculation Tropical Storm Edouard won't damage U.S. Gulf facilities and as concern economic growth will slow prompted investors to sell commodities.

Oil dropped to its lowest since May 5 as Edouard's sub- hurricane wind speeds eased concern that offshore and platforms would be damaged by the storm. Gold, platinum and wheat declined on speculation slower growth will curb demand and as a stronger dollar limited the appeal of commodities as an inflation hedge.

Freddie Mac and Fannie Mae are returning to favor among bond investors even as stockholders lose confidence after the Treasury threw its support behind the biggest U.S. mortgage-finance companies.