(1888PressRelease)
November 25, 2007 - There has been increased speculation that the Federal Reserve will choose to further reduce interest rates following the publication of the body's first quarterly set of economic forecasts.
Despite the fact that policy makers gave repeated warnings that interest rates would not be cut, the minutes of officials' October meeting show that the growth outlook is more "uncertain" that that for inflation.
While officials were confident that inflationary pressures would ease, markets were considered as being "still fragile", while the economy is perceived to be prone to an "adverse shock".
"Most participants judged that the uncertainty attending" their growth forecasts "was above typical levels seen in the past," the Federal Reserve said in a statement.
Growth of just 1.8 per cent is now predicted for 2008, according to the middle range of forecasts.
In June, policy makers had envisaged that next year's growth would be in the region of 2.5 to 2.72 per cent.
Further analysis of the US economy could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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