Posted on 11/20/2008 5:03:41 PM PST by BGHater
Federal Reserve officials have pared their outlook for economic growth through 2009 to minimal levels and are prepared to cut interest rates further, while concern has risen that a deflationary spiral may take hold.
The central bank expects growth in the United States to contract in the second half of 2008 and the first half of 2009, with some even were more pessimistic, according to minutes released on Wednesday of the Fed's Oct. 28-29 meeting, when it cut its benchmark interest rate by a half percentage point to a percent.
"Even after today's 50 basis-point action, the committee judged that downside risks to growth would remain," the Fed said in the minutes.
"Members anticipated that economic data over the upcoming inter-meeting period would show significant weakness in economic activity, and some suggested that additional policy easing could well be appropriate at future meetings," the U.S. central bank said in the minutes.
U.S. stocks plunged to their lowest closing level in five and a half years on Wednesday as investors braced for a lengthy downturn, including the possibility that U.S. automakers could collapse.
David Coard, head of fixed-income sales and trading with The Williams Capital Group in New York, said the Fed's comments painted a particularly glum picture.
"They left no question that they see the economy contracting and that means we are in a recession," he said.
In a sign of stresses around the world, officials at the Bank of England said they had considered slashing rates by a full 2 percentage points this month before settling for the smaller but still astonishing cut of 1.5 percentage points, according to minutes of its Nov. 5-6 meeting released on Wednesday.
(Excerpt) Read more at cnbc.com ...
It’s almost time to refinance with a government bailout of my mortgage and get my payment down lower than my car. /nods
If this is what’s happening before the messiah gets in what will it be like after he is?????
Uhhhh...BO your plan is not going to work so push for lower interest rates and taxes...that is if we don’t throw you out first.
If the UK lowered their interest rates to ZERO, why can’t we?
"If recession should threaten serious consequences for business (as is not indicated at present) there is little doubt that the Federal Reserve System would take steps to ease the money market, and so check the movement."
~~Harvard Economic Society, October 19, 1929
"Business will turn for the better this month or next, recovering vigorously in the third quarter and end the year substantially above normal."
~~Harvard Economic Society, May 17, 1930
No kidding. The way it's going, I'm waiting for the -1.5% mortgage refinance offer, just to get the refinancing fees out of me.
My truck is getting old, maybe I can get a -2.5% car loan.
Maybe I can get that too, even though I dont have a car loan.
I just got an offer from BMW for 0.9% today. I might have to take that up if this bailout goes through.
Seriously, I’ve never checked into one of those 0% interest loans the dealers love to advertise, but I’ve heard they’re hard to get and full of fine print. Make sure you read the fine print first.
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