Interest Rate Concern

The minutes of the meeting indicated that certain members thought that

the downside risks to the economic growth was increasing and was more

broadly based then they had previously anticipated. All of the members,

however, did agree that the predominant concern was that inflation would not

moderate.

The meeting also reflected that including inflation concerns, the economy

was indicating various conflicting information, which makes adjusting the

rates in either of the directions a possibility. Together with their rates

decision of last month, the US Federal Reserve released a statement that

they had left room for any further increases, in order to keep inflation in

check, if it was needed at any time.

The information collected by the US Federal Reserve has shown that

activity in the manufacturing sector has remained less than in the previous

years, that the previously active housing market sector has slowed down

remarkably, and that there is still a great concern in the consumer spending

sector, even though the end of the year had seen a little increase in

spending.

The minutes of the US Federal Reserve, have also indicated that after

eighteen rises, which were successive, that all the members of the US

Federal Reserve Committee with the exception of one member, voted for the

rates to remain the same for the fourth time.