Fed predicts 'moderate recovery' in 2010
07-01-2009
The US recession is likely to drag on well into 2009 with a "moderate recovery" in 2010, according to minutes released by the Federal Reserve from last month's deliberations ahead of a historic cut in interest rates. The minutes from a December 15-16 Federal Open Market Committee meeting at which policymakers unanimously cut rates to near zero showed they were faced with a grim economic forecast from its staff. The report showed economic activity "appeared likely to decline substantially in the fourth quarter of 2008". It added: "The staff revised down sharply its outlook for economic activity in 2009 but continued to project a moderate recovery in 2010."
