Wednesday, August 29, 2007

Minutes Show from FED


Aug. 28 (Bloomberg) -- Federal Reserve policy makers put aside concerns
about the rising cost of credit at their Aug. 7 meeting because they weren't
convinced a slowdown in inflation would last, according to minutes of the

Ten days before the central bank was forced to cut a key interest rate, the
Federal Open Market Committee was given lower growth forecasts by staff
economists and noted that ``strains in financial markets'' jeopardized the
expansion. Further turmoil might require a response, Fed officials said

``Mortgage loans remained readily available to most potential borrowers,''
and the ``supply of credit to finance real investment did not appear
significantly diminished,'' the Fed said in the minutes. ``Members expected
a return to more normal market conditions, but recognized that the process
likely would take some time.''

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