Fed Sees Slower Growth, Less Inflation Next Year

[Maggie_May]

The Fed projected U.S. growth to slow in 2008 to 1.8 percent to 2.5 percent, sharply down from the 2.5 percent to 2.75 percent growth forecast in June. Policy-makers lowered their forecast because of the tightened terms and reduced availability of non-standard mortgages, weakness in housing, and rising oil prices, a summary of the forecast said.
http://www.cnbc.com/id/21901623

WASHINGTON (AP) -- The Federal Reserve reported Tuesday that it expects slower economic growth and a slight bump up in unemployment next year due to the housing slump and a credit crunch. The board also said, however, that it thinks inflation will remain moderate.
On the growth side, the Fed said it believes that business growth will slow next year, with the gross domestic product (GDP) coming in between 1.8 percent and 2.5 percent. That would be weaker than how the Fed expects the economy to perform this year and would mark a downgrade to a previous projection released in the summer.
http://money.cnn.com/2007/11/20/news/economy/fed_minutes.ap/index.htm?postversion=2007112014

How could there be less inflation?

[ChairmanAgnostic]

1. translation:

THE FUCKIN SKY IS FALLING! Companies are gonna start axing and firing, and people will be out of work, and some banks are going under! Oh, and with several million being kicked out of their homes thru foreclosure, spending will be down, and because the dollar will be in the shitter, interest rates will come up, meaning mortgage rates on adjustables will rocket up, kicking out another million homeowners.

Do what China said last week. Sell dollars, buy euros.

[Warren Stupidity]

2. Lying sacks of shit.

Their lower inflation will not include:

huge fuel cost increases;
huge hikes in healthcare costs;
huge increases in food costs;
huge increases in college expenses.

[chaumont58]

3. Regarding inflation and the price of oil

So much of the economy is dependent on petroleum products. If the cost of those products increases significately, how can that increased cost not be passed on to the consumer? Its bizarre to see the cost of a barrel of oil go way up, to see the cost of a gallon of gas go way up and figure all will be ok. Its just a phase business is going through! The federal government must have analysts looking at the economies of other countries and make predictions as to what effect those economies are going to have on ours. In other words, the US government has known for years that the price of gas and all products that have a major dependency on oil are going to go way up. Also, it doesn't take a rocket scientist for anyone to figure it out. If someone watches anything besides MTV and the Disney Channels, he or she is going to know.

[NorthernSpy]

4. decline in real wages, and plenty of inflation on basic necessities...

They always have to sugarcoat it, don't they?