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Showing posts from July 17, 2008

Economic sentiment in the US getting gloomier

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Business Times - 17 Jul 2008

Bernanke says growth could be slower, inflationary pressures could continue mounting

By LEON HADAR
WASHINGTON CORRESPONDENT

US FEDERAL Reserve chairman Ben Bernanke was a bearer of bad economic news during his testimony before the Senate Banking Committee on Tuesday, suggesting that the problems facing the American economy were actually more severe than they have been for several years.

Economic growth would probably be slower than expected while inflationary pressures could continue mounting. And the notion that inflation is up while growth is down isn't going to improve the mood of officials and lawmakers in Washington.

American consumers and investors may have already concluded that the Fed, believing inflation could get higher than expected in the coming months, is not going to lower interest rates anytime soon.

'Over the remainder of this year, output is likely to expand at a pace appreciably below its …