U.S. demands a new reduction of interest
Posted on 2008-11-20




Reduced the U.S. Federal Reserve, "Central Bank" strongly forecast of U.S. economic activity for the remainder of this year and next year, noting that it might be necessary to cut an additional U.S. interest rates to help remedy the worst financial crisis hit the United States for more than half a century

The latest Federal Reserve's forecast that U.S. GDP growth for the United States of America can be zero, or grow at a rate of 0.3% by the end of the current chimpanzees, with speculation backtracking by 2 ر 0% or expand by 1.1% in the next year 2009.

The projection is less than its predecessor, which had been announced in the Congress in last July.

According to reported the Saudi Press Agency "WAS" on the most recent meetings of the Council held at the end of October last interest-rate policy, said that the economy will remain very weak in the next year and thus the speed of recovery will be very slow.

With the expected growth failure in the U.S. economy or fall into recession, the Fed predicted that unemployment rates are above the current level of between 6.3 to 6.5% this Amo to rise next year, between 7.1 or 7.6%, and these expectations come from the highest expectations in July the past.

At the same time the Council expected inflation to decline this year and next year compared to their expectations in the previous month of July.

He said that the world economic slowdown is reducing demand for energy, food and other commodities, pushing prices lower. This will lead to the stronger dollar to reduce the risk of inflation.

The Council anticipated that inflation is between 2.8% and 3.1% this year, with the ratio expected to decline in 2009 to reach between 1.3% and 2.00%.

Faced with the prospect of a very weak in the U.S. economy was suggested by some Federal Reserve officials that it might be appropriate to report a further drop in interest rates in future meetings.

The Board has been reduced at its meeting on Oct. 29 the level of interest rates to 1%, a level not seen before at least 50 years.

And many economists expect the Council to cut interest rates again at its meeting on December 16.