FOMC Minutes Show More Concern About Recession

The minutes from the last Fed meeting are out, and they show that the Fed recently became even more concerned about economic growth contracting. Here are the highlights:

• Most Fed officials see inflation moderating later in '08,'09
• Fed says judge recent inflation data 'disappointing
• Fed recognized rate policy alone could not solve problems
• Many Fed officials judged a contraction in GDP 'likely'
• Fed says greater uncertainty about inflation outlook
• FOMC Minutes: Some members foresee 'severe' economic slump
• FOMC Minutes: 'Little indication' housing has begun to stabilize
• Fed says econ activity may shrink in 1st half of '08

The market has been hovering in the red all day, and just ticked lower after these comments were released. All sectors are down today, led by homebuilders, semis, and brokers. The only group that is bucking the weakness is the ag/material stocks, and a handful of energy names.