LOGO: Truthdig: Drilling Beneath the Headlines. A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.Best Political Blog Winner, 2007 Webby Awards, People's Voice and Jury.  
 
July 6, 2008
Log in / Register

 Choose a size
Text Size

Reports
On Black Patriotism
Obama’s Leap of Faith
Happy Oil Dependence Day

Arts & Culture

Digs
Inside the Data Mine

Ear to the Ground

A/V Booth

Truthdig Bazaar
Print Thumbnail

Jesus

Mr. Fish
$90

more items

 
Ear to the Ground

Fed Forecasts Slow Growth in 2008

Email this item Email    Print this item Print   
Posted on Feb 20, 2008

Officials at the Federal Reserve are running out of creative ways to stave off a recession and expect the U.S. economy to slow to a crawl in 2008, with a growth rate of only 1.3 to 2 percent over the year.


The New York Times:

Making matters more difficult, the Labor Department reported on Wednesday that consumer prices are rising faster than analysts had expected and faster than the central bank’s unofficial comfort zone.

Consumer prices jumped 4.3 percent in January, compared to one year earlier, the fastest year-over-year jump since September 2005. Excluding the volatile prices of energy and food, consumer prices climbed 2.5 percent lower, but still significantly above the Federal Reserve’s unofficial comfort zone of 1 to 2 percent.

That puts the Federal Reserve in a difficult position. On the one hand, officials are determined to do what it takes to keep the economy growing at a time when oil prices are surging, credit is tightening and major financial institutions are shell-shocked from the collapse of the housing and mortgage bubbles.

On the other hand, the fear of rising inflation makes it more difficult than ever for the Fed to jolt the economy with another wave of cheap money.

Read more

Email Newsletter

Get truth delivered to your inbox every week.

Previous item: Bhutto's Husband Won't Seek PM Position

Next item: Clinton's Soft Money Boost

Jump to Comments

Advertisement


Elsewhere: .

Are you a Truthdig member yet? Login now, or register with Truthdig.

Add Your Comment

Posts by unregistered readers are moderated. Posts by members
are published immediately. Why wait? Register today!






Notify you when others comment on this article?


Are you a human?
Retype the word you see here.


Please read and abide by our comment policy.
By submitting this comment, you agree to this site's terms and conditions.

Newsletter

Get Truthdig in your inbox

Privacy Policy

 
Click here to advertise with Truthdig
 

 
Join the Liberal Blog Advertising Network
 
 
 
 
 
 
 

A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
Copyright © 2008 Truthdig, L.L.C. All rights reserved.