NewsMine — economy — united-states — 2008-jan-may — Viewing Item

Fed expects higher inflation { February 20 2008 } Original Source Link: (May no longer be active)    http://ap.google.com/article/ALeqM5hwHbki86OAoUhqDveb6JLDol_4-gD8UU7K3G0 http://ap.google.com/article/ALeqM5hwHbki86OAoUhqDveb6JLDol_4-gD8UU7K3G0 http://news.yahoo.com/s/ap/20080220/ap_on_bi_ge/fed_economy Fed Lowers Economic Forecast By JEANNINE AVERSA February 20, 2008 WASHINGTON (AP) — The Federal Reserve on Wednesday lowered its projection for economic growth this year, citing damage from the double blows of a housing slump and credit crunch. It said it also expects higher unemployment and inflation. The updated forecasts come amid worry by Federal Reserve Chairman Ben Bernanke and his colleagues that the economy could continue to weaken, even after their aggressive interest rate cuts in January, according to minutes of those private deliberations released Wednesday. "With no signs of stabilization in the housing sector and with financial conditions not yet stabilized, the committee agreed that downside risks to growth would remain even after this action," minutes of the Fed's Jan. 29-30 closed door meeting showed. The Fed at that session voted to cut a key interest rate by one-half percentage point to 3 percent at that meeting. Just eight day earlier, the Fed, in an emergency session, slashed its rate by a rare three-quarters percentage point. The two rate cuts together marked the most dramatic rate reductions in a single month by the Fed in a quarter century. Under its new economic forecast, the Fed said that it now believes the gross domestic product will grow between 1.3 percent and 2 percent this year. That's lower than a previous Fed forecast for growth, which at that time was estimated to be between 1.8 percent and 2.5 percent. GDP is the value of all goods and services produced within the United States and is the best barometer of the country's economic fitness. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below. WASHINGTON (AP) — Federal Reserve policymakers are forecasting slower economic growth, higher unemployment and higher inflation. The revised forecast for the rest of the year reflects their concern that the economy could continue to weaken even after aggressive interest rate cuts. In documents released Wednesday, the Fed said it believes that the gross domestic product will grow between 1.3 percent and 2 percent this year. That's lower than a previous Fed forecast for growth — which was estimated then to be between 1.8 percent and 2.5 percent. GDP is the value of all goods and services produced within the United States and is the best barometer of the country's economic fitness. Hosted by Google Copyright © 2008 The Associated Press. All rights reserved.

10 recession proof cities { May 9 2008 } 7000 stores could close this year { April 30 2008 } Americans increasing delinquent on credit cards { November 2007 } Americans sell posessions to makes ends meet { April 29 2008 } Bearsterns takeover causes economic tumble { March 17 2008 } Bernanke fedrate cut disappoints treasury bulls { December 2008 } Bernanke tells congress more rate cuts needed { February 14 2008 } Buffett says recession may be worse than feared { March 2008 } Consumer confidence falls to 26yr low { March 2008 } Consumer prices increase more than forecast { January 2008 } Dollar falls to record low against euro { March 2008 } Dollar rebounds after euro terror threat { March 19 2008 } Dow drops 370 on service sector news { February 5 2008 } Dow products will have price increase { April 2008 } Fed cuts another half point appeasing markets { December 2008 } Fed expects higher inflation { February 20 2008 } Fed uses depression era tactics { February 2008 } Federal reserve takes risk from risky mortgages { March 12 2008 } Food costs rising fastest in 17 years { March 2008 } Food prices causing world crisis { March 2008 } Global selloff causes fed 3 4 rate cut { January 22 2008 } GM largest loss ever for any auto company { January 2008 } Gold jumps 1000 as dollar plummets { March 13 2008 } Housing slump not reducing inflation { January 2008 } Inflation biggest jump in 26 years { January 15 2008 } January wholesale inflation up { January 2008 } Potential fed rate cuts sends gold to new record { December 2008 } Ron paul blames federal reserve for weak economy { January 22 2008 } Stocks fall on slow projected growth { May 21 2008 } Stocks fell 5perc before rebounding { January 23 2008 } Stocks up when bad housing data suggests cut { January 8 2008 } Teens giving up wasteful excessive spending { April 17 2008 } US living standards drop below britain { January 6 2008 } USA economic measure defines misery { March 12 2008 } Wall street optimistic despite main street { May 2 2008 } Wheat prices since 2002 have biggest gain { January 2008 } World drops again as US anticipates rate cut { December 2008 } Files Listed: 37

Correction/submissions

CIA FOIA Archive

National Security Archives

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information, go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purpose of your own that go beyond 'fair use', you must obtain permission from the copyright owner.