Sounded the alarm bell for the Fed economic data highlight the dilemma.

This week there are a number of data to the U.S. Federal Reserve Board (Federal Reserve, referred to as the Fed) Qiao Xing alarm, making it more acutely aware of the harsh environment and face difficult choices. .The performance of U.S. economic growth remains weak, which led to increased unemployment did not fall only in the status. .At the same time, inflation warning lights are flashing incessantly. .Fed officials that dilemma is that two major problems for monetary policy measures should be taken just conflict. .<P> Present, most people still believe that, in view of the recent Fed moves interest rates will remain unchanged for a longer period of time. .But unless the improvement in economic growth or inflation pressures eased, or Fed officials will eventually have to make difficult choices. .</ P> <P> economic growth, the U.S. government released a report Thursday, the U.S. June payrolls by about 62,000 this year, the cumulative reduction since as many as 438,000 people. .</ P> <P> most economists believe that, given the challenges facing the economy as a whole, the current unemployment situation is still relatively under control in, but the future is likely to deteriorate. .United States June 28 week initial claims for unemployment benefits rose 16,000 to 404,000 people or more, for the first time jobless claims increased to 390,000 people around the average. .</ P> <P> Rui Sile, chief economist at Nomura Securities, said jobless claims data, the performance looks like before the economic downturn is the state, that the job market or will enter a new phase in staff .natural decrease and recruitment freeze, based on the actual job cuts lead to increased unemployment. .The number of initial claims for unemployment benefits increased further decline in nonfarm payrolls may increase, resulting in the overall unemployment rate to rise further. .</ P> <P> other reports also showed growth prospects. .Institute for Supply Management manufacturing and service activities were done for the two survey showed U.S. manufacturing activity in June surprisingly strong, and service sector activity unexpectedly slow. .Economists believe that the two reports indicate the future performance of the economy will be weak, given the increase in the manufacturer's inventory is expected to rebound in manufacturing activity is unlikely to achieve again. .</ P> <P> more importantly, ISM report reflects the inflationary pressures. .ISM manufacturing data show that the field of the most widely used since 1979 the price of the situation, lead to stagflation risks of stagflation is that the characteristics of mediocre economic growth, while inflation rose sharply. .At the same time, ISM services report latest occurrence of a similar situation, service price index in June hit its worst level ever in the report. .</ P> <P>, of course, ISM report's findings on the price of the respondents is that broad understanding of price changes and price changes do not reflect the degree of depth, it is also necessary to interpret carefully. .With soaring energy and food prices, most people felt the impact of rising prices, it is not surprising, for policy makers, the most critical is how the shock strength in the end. .</ P> <P> price pressures and rising public expectations of inflation will accelerate to increase the risk of increasing, so that Fed officials worried. .But the core of relatively stable prices gave them a relief, coupled with expected economic weakness will be able to reduce price pressures, policy makers have been able to keep interest rates unchanged for the time being focus on economic growth breathing space. .</ P> <P> economists argued that the overall inflation situation is not as imagined by the development of Fed. .BNP Paribas economist Airey view, Fed policy dilemma has been caught in the current weak U.S. economic growth, and increase overall inflation or 5% hit in August, the current consumer price index increase over the same period .4.1%. .He said that sort of data is the decision-makers can not be ignored. .</ P> <P> also face greater inflation pressure against the European Central Bank has begun to come forward. .The difference is that with the Fed, the ECB has only one mission, is to take the inflation rate below 2%. .The central bank to raise interest rates on Thursday launched initiatives to curb inflation growth, Trichet made clear the Bank's strong commitment to stable inflation expectations. .Factor is caused by rising prices of energy and lead to the ECB and the Fed struggling to cope with the main culprit. .</ P> <P> worth Fed gratifying is that so far, price increases do not seem to push wages higher. .Credit Suisse said the current U.S. real wages have dropped 1.6% over the same period. .Credit Suisse said the credit for the consumer and the consumer, this is really bad news, but core inflation is good news is that the central bank worried about the wage - price spiral situation does not exist in the United States, .This is to provide a temporary Fed room to keep interest rates unchanged. .</ P> <P> announced late last month from the Fed to keep interest rates unchanged since the policy makers to comment on much. .The table had only two states that are also expected to rebound in the U.S. economy will slow and inflation will continue to rise. .</ P> <P> members will soon be leaving the Fed in Israel after Miskin said the slow recovery of financial markets means that within a certain time the U.S. economy will face great resistance, so the pace of economic growth may remain weak, but .He hopes to make some improvement in economic growth next year. .</ P> <P> Federal Reserve Bank of Atlanta, Lockhart also has a similar view. .He said the future more rational view is that housing prices may also experience a period of decline, slow recovery of the housing market, so to-market and economic improvement of road will be bumpy. .</ P>.