Tuesday, January 06, 2009


Not exactly shiny happy people.

As Federal Reserve officials met last month to confront the deepening recession, they worried that even a dramatic cut in interest rates and unprecedented new measures in monetary policy would not be enough to cauterize the country’s economic troubles quickly.


“The overwhelming message gleaned from the minutes of the meeting is one of fear — fear of a deep recession, and fear of a debilitating deflationary spiral that would capsize a debt-laden economy,” Joshua Shapiro, chief United States economist at MFR, wrote in a note.