Fed sharply lowers forecasts, hints of rate cut – Nov. 19, 2008
by Tom on November 19, 2008
in Market Musings
WASHINGTON (AP) — The Federal Reserve on Wednesday sharply lowered its projections for economic activity this year and next, and signaled that additional interest rate reductions may be needed to help combat the worst financial crisis to jolt the country in more than a half-century.
With the economy forecast to lose traction, or even jolt into reverse, unemployment will move higher, the Fed predicted.
Facing the likelihood of “significant weakness” in the economy, some Fed officials suggested “additional policy easing could well be appropriate at future meetings,” according to documents from the Fed’s most recent closed-door deliberations on interest rate policy at the end of October.
Fed sharply lowers forecasts, hints of rate cut – Nov. 19, 2008.
Sorry, but when I read this report of the Fed’s Minutes, I had two main thoughts:
- I wonder what their thoughts are about the economy right now, including the GM/auto industry mess.
- I wonder what they are going to do when we get down to a 0% Fed Funds Rate.
No answers for those tonight, too much to do and not enough time to write it all tonight anyway.
More later.
