FOMC Minutes Show Continued Concern On The Part of the Fed

Here are the highlights from the just released minutes of the most recent FOMC meeting:

• Fed says cuts '08 GDP forecast to +0.3-1.2% from +1.3-2%
• Fed says they expect U.S. GDP to contract slightly in 1st half 2008, recover in 2nd half
• Fed says food, energy prices to keep boosting overall inflation
• Fed says core inflation improvement probably temporary
• Fed says that most members viewed growth risk still to 'downside'
• Fed says unemployment to rise in 2008 and 'stay elevated' in 2009
• Fed says sees no sign of bottoming out in housing activity or home price declines
• Fed expects growth rebound in 2008 second half
• Fed says housing 'bleak,' consumer spending 'slowed to a crawl'
• Fed says 'most' Fed officials viewed April rate cut as 'close call'
• FOMC minutes signal no more rate cuts even if economy contracts