Fed Notes 'Significant' Risk of Downturn

Transport Topics, February, 2008 by Anonymous

Federal Reserve officials said during their Jan. 29-30 meeting that lower interest rates may be needed for some time to stave off the effects of a faltering U.S. economy.

"Several participants noted that the risks of a downturn in the economy were significant," according to minutes of the Fed's Jan. 9 and Jan. 21 conference calls and Jan. 29-30 meeting.

During the January meeting, Fed officials voted to lower rates by 0.5 percentage point. The decrease followed a 0.75-percentage point "emergency" cut earlier in the month.

Also last week, the Conference Board said its index of leading economic indicators in January posted its fourth consecutive monthly decline, falling 0.1% after a revised 0.1% dip in December.

- Staff and Wire Reports