Many Americans down on economy, Bernanke says Fed set to help

Northwestern Financial Review, Feb 1-Feb 14, 2008

A new Harris poll finds 45 percent of Americans believe the economy will get worse in 2008, and 38 percent say they believe their own personal financial situation will deteriorate. Meanwhile, Federal Reserve Board Chairman Ben Bernanke noted in a speech that the economy is likely to grow at a slower pace this year.

"The Federal Reserve in not currently forecasting a recession, but we are forecasting slower growth," he said in a Jan. 10 speech. Bernanke also indicated the Federal Open Market Committee will likely reduce the fed funds rate yet again. The committee, which was scheduled to meet at the end of January, has already reduced rates 1 percent since last September. The Harris poll, which involved 2,335 participants across the country, found that 41 percent of Americans predict a reduction in personal spending in 2008.