Fed rate cut end of the meeting suggest the economic slowdown expected inflation.

Federal Reserve (Fed> Fed) 21 Minutes released in April, lower economic growth forecast this year and warned of inflation and unemployment may rise, while unlikely to further reduce interest rates recently suggested. .<P Align=center> also cut rates even if the economic downturn </ P> <P> (http://finance.) Fed> Fed on April 29 to 30 minutes of the meeting said the meeting, several members .It was suggested that such a view: if there is information that the U.S. economy to slow further or even decline, the central bank to ease monetary policy may also be defective, unless the significant deterioration in the economic growth prospects. .</ P> <P> Federal Open Market Committee (FOMC) meeting in April with eight votes in favor and two votes against the vote results will determine the federal funds rate of 0.25 to 2 per cent. .This is a few months since the Fed> Fed cut interest rates seventh, cut interest rates a total of 3.25 per cent. .Fed> Fed commercial banks and investment banks for the discount rate has been reduced to the same extent. .The latest minutes of the meeting support the market for Fed> Fed will be a longer period of time is expected to keep interest rates unchanged. .</ P> <P> meeting noted that the meeting last month, downside risks to the economy as the arguments have been inappropriate, because the current view, this risk upside risks to inflation have become more balanced, .also said that financial markets deteriorated sharply and gave a serious blow to economic activity, the possibility has been significantly diminished. .In the March 18 meeting of the Fed> Fed meeting, some officials expressed the housing market and financial market-driven concerns about the severe economic decline, officials will call this case a vicious circle. .</ P> <P align=center> lower rate of economic growth </ P> <P> But Fed officials said that while reducing the possibility of severe economic recession, but a weak real estate market and employment conditions remain sluggish .downside risks facing the economy. .The housing market is still weak, consumer spending seems to significantly slow down, the outlook for business spending did not pick up. .</ P> <P> Fed> Fed in the updated quarterly economic forecast that it expects GDP growth of only 0.3% -1.2%, lower than the previous forecast of 1.3% -2%, in addition to increased unemployment .rate expectations and the overall and core personal consumption expenditures price index forecast. .</ P> <P> Fed> Fed said that the export was a notable bright spot, strong economic growth overseas and the dollar gave exports a support. .But there are many officials pointed out that if the slowdown in overseas economies, exports will be implicated. .Boost by the export program, the U.S. first quarter gross domestic product (GDP) growth of 0.6% annual rate in the revised data released this month when the government, GDP growth could be revised up to about 1%. .</ P> <P> In addition, this quarter tax rebate of the federal government will have a positive effect, consumer spending is expected to be boosted. .But Fed> Fed officials are not sure whether from consumer spending to get much help. .</ P> <P align=center> inflation outlook mixed </ P> <P> Fed> Fed Jizhong at the meeting described as a mixed outlook for inflation, while food and energy prices push the overall inflation rate increased, and the other .the one hand, good performance of core inflation. .But officials believe the performance of core inflation is better to some extent by short-term factors. .Fed> Fed added that inflation is expected to heat up the possibility of facing the inflation outlook is the main upside risks. .</ P> <P> officials were slightly raised the 2009 total and core inflation rates are expected, but remains basically unchanged in 2010 expected that the overall personal consumption expenditure price index rose 1.8% -2%, the core personal consumption expenditures .price index increased by 1.7% -1.9%. .</ P>.