Fed "Beige Book": This year, U.S. economic growth has slowed.

<P> 5 U.S. Federal Reserve Board released the country's economic situation report (commonly known as: brown paper) that the slowdown in U.S. economic growth this year, rising inflationary pressures in some areas. .Analysts believe that the Fed continues to cut interest rates this month or will. .</ P> <P> economic slowdown </ P> <P> this report is based on the Federal Reserve owned 12 Federal Reserve Bank survey results compiled, the collection of information contained in the time between the end of last year at the end of this year 2 .. .</ P> <P> report shows into 2008, the U.S. economic slowdown, 12 Federal Reserve District, two-thirds of weakness or atrophy of commercial activities, one-third of moderate growth. .Report that the weakness in the housing market continued to impact consumer spending and business investment. .</ P> <P> reported that the overall poor state of the U.S. retail industry, retail trade in most parts of the report "weaker than expected, pessimistic, weak or slow down." .However, the report showed continued expansion of tourism activities. .The contribution of personal consumption rate of the U.S. economy Qicheng, so economists worry that continued weakness in retail trade has increased the risk of economic recession. .</ P> <P> half of the faltering manufacturing sector regional reports; the overall performance of the housing market remains weak. .Fed Beige Book also said that most Fed regions reported difficulties in the banking industry to lend, loan demand. .However, the demand for energy and agricultural sectors remain generally strong. .</ P> <P> In addition, released February 5, ISM non-manufacturing index for the second consecutive month decline, although the 44.6 from last month rose sharply to 49.3, better than expected, but still since April 2003 .the second low. .Addition to price of the nine non-price indicators in five areas already in decline, not only by the sub-prime crisis began to shrink the financial industry, other industries such as accommodation, catering, transportation, education, wholesale, retail Dengjun show weakness .. .CICC analysis, leading the U.S. ISM manufacturing index of manufacturing output of about 2 months, which means that the manufacturing sector in the short term will continue to decline. .</ P> <P> 2007 third quarter, U.S. economic growth rate of 4.9%, but then in the fourth quarter of its level of economic growth was only 0.6%%, economists expect U.S. economic growth in the first quarter of this year, may .slow further to 0.4%. .</ P> <P> in inflationary pressures, the report said, U.S. companies in different parts of the digestive capacity of the different inflation pressures. .With raw material prices, Boston, Cleveland, Dallas and Atlanta to some enterprises to improve the product price, and Kansas City area, the report basically stable prices. .</ P> <P> will become the basis for meeting the key interest rate </ P> <P> published 8 times a year the Fed has been called the "Beige Book" survey of national economic situation. .The report will be the 18th of this month the Federal Reserve meeting on interest rates decision making. .</ P> <P> Federal Reserve Chairman Ben Bernanke in the Feb. 27 U.S. House of Representatives Financial Services Committee hearing that since last summer, the U.S. economy has become very bad, the real estate market continues to decline .The credit crisis worsening employment situation is deteriorating. .He pointed out that this series of negative factors to the American public and businesses on consumption and investment have become more cautious, which further exacerbated the slowdown in the U.S. economy. .</ P> <P> He stressed that the Fed will carefully assess the economic prospects of all kinds of information and timely action when necessary to support economic growth and provide enough to prevent the economic downside risk measures. .</ P> <P> Bernanke's remark with his speech earlier this month, and Fed Vice Chairman Donald Kohn's recent remarks are basically the same position. .Widely believed to Bernanke's remarks mean that the Fed will continue to pursue the "cut policy." .</ P> <P> Bernanke also stressed at the hearing, the Fed must remain vigilant on inflation pressures. .He pointed out that given the current energy and food prices, U.S. inflation upside risks are increasing, and if this trend of increasing inflation, the Fed will cut interest rates weighed against inflation and to stimulate economic growth, much less room for maneuver .small. .</ P> <P> place to avoid a recession, the Fed since last September has been 5 consecutive rate cut, interest rates fell by a total of 2.25 percentage points. .Some economists believe the Fed will be meeting again in mid-March by 0.5 percentage point rate cut. .</ P>.