Recession in economic growth, 2008— says Fed official Caymanmama does a review
2008-01-20 16:34:15 (GMT) (Caymanmama.com - Banks & Banking Top Stories News)RICHMOND, Va. Friday, the President of the Richmond Federal Reserve said that in year 2008 the Economic growth is predictable to be fragile with decline in the market of housing and a distinguished slowdown in the business spending to elevate the chances of recession.Further cuts in interest rate are also possible but, rising in inflation also intimidates the economy since the price of oil and food keeps rising, said Jeffery Lacker.
Lacker added in a speech to the members of financial and banking services industries that by the end of 2007 the spending by the consumers started to slow down and this might get further dampened this year by falling in values of homes and higher cost of energy.
Worldwide, the jobs in December grew merely by 18000 jobs and the modest growth of job is expected for year 2008, he said.
Jeffery Lacker said “business spending has helped the economic growth last year. But it is expected to increase ‘less robustly’ because some companies will see higher capital loss and weakening demand for their products”.
To help the economy grow it is expected to narrow the trade deficit. Exports would continue to become a bright spot as weaker dollar with relatively vigorous foreign economies to support the demand for American services and goods.
Lacker is expecting to improve the picture of economy towards the end of the year, however all this depends on the extent of losses in mortgage market and how it would affect the prices of stock.
CaymanMama.com - Press Release Distribution Service
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