The Federal Reserve on Wednesday slashed its U.S. economic growth forecast for 2008 and signaled that mounting concerns over inflation would make further interest rate cuts unlikely.So the Federal Reserve is now out of options to try to spur this economy. With oil hitting record highs daily and people suffering economically all they can do is sit by and watch as we enter what I believe will be a deep and protracted recession.
"Several members noted that it was unlikely to be appropriate to ease policy in response to information suggesting that the economy was slowing further or even contracting slightly in the near term," the Fed said in minutes from its April 29-30 policy meeting.
Fed officials said that cutting benchmark interbank lending rates by a quarter percentage point to 2 percent at their last meeting was "a close call," reinforcing the impression that policy-makers may be putting further interest rate moves on hold.
"If you had any doubt that the Fed is signaling a pause, that doubt is gone," said Christopher Low, chief economist at FTN Financial in New York.
The oil speculators are getting rich while the average family is having an even harder time making ends meet. Where are the lawmakers to stop this rampant speculation? Washington is broken and it is going to take citizen action to take back our country from the special interest groups that are fast turning us into a third world nation.