Jing Bao: Fed before the outbreak of the subprime crisis has had an idea!.

<P>: Http://finance. Inquiry, the Federal Open Market Committee announced 27 August 7 meeting showed that Fed officials on the deteriorating financial markets, concerns have increased, if economic growth affected, may .need to take policy action. .</ P> <P> YORK, Aug. 28 reported that the U.S. Federal Open Market Committee (Federal Open Market Committee, referred to as the FOMC) 27 announced the August 7 meeting showed that in the U.S. Federal Reserve Board (Federal Reserve, .referred to as the Fed) 8 月 17 日 cut the discount rate which for some time before, Fed officials on the deteriorating financial market conditions are very worried, and the possible need for policy action. .</ P> <P> Fed announced in the above minutes delayed three weeks, said financial market conditions can not rule out the possibility of further deterioration, if growth is affected, Fed may need to take appropriate policy measures. .</ P> <P> However, the Fed policy meeting officials three weeks ago when the financial markets for lack of a comprehensive understanding of the impact, Fed that inflation is still facing the economy, "the first" risk, although the Fed meeting .recognition of the minutes of the decline in the housing market may be more in-depth and lasting. .</ P> <P> Fed officials in the August 7 regular meeting voted unanimously to keep interest rates unchanged at 5.25%, which is the ninth Fed made the decision to keep interest rates unchanged. .The meeting also decided to maintain the position of inflation, despite the downside risks to the statement on the economy has strengthened the wording of the Fed's position that becoming more and more neutral. .</ P> <P> data as of July to the Fed about inflation risks seem greater to support the view. .</ P> <P> second quarter U.S. economic growth by 3.4%, while the increase later this week and may even be revised to 4%. .As at July's data also showed that the economic situation in the third quarter made a good start. .</ P> <P> meeting noted that consumer spending should moderate growth, while business investment will be supported by sound fundamentals, rapid growth of overseas economies will continue to support U.S. economic growth, although the housing market .cause drag. .</ P> <P>, of course, all this is just the original view of Fed. .</ P> <P> in just 10 days after the meeting, for the short-term credit markets to provide the necessary funds, Fed officials in a rare meeting between the two policies will cut the discount rate by 50 basis points to 5.75% .But the Fed has not lowered the cost of financing the wider impact of the federal funds rate. .</ P> <P> announced in the August 17 statement released after the cut in the discount rate, Fed warned that risks of slower economic growth has increased, and no mention of inflation. .This led many Fed watchers speculated that loose Fed monetary policy stance began to shift. .</ P> <P>.