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Investors should be prepared to weather a difficult 2009, judging from the recently released minutes of the latest Federal Reserve meeting.
At the meeting, members revised their economic outlook for 2009 down "sharply," based on an expected substantial decline in the Gross Domestic Product for the fourth quarter of 2008 and other factors such as rising unemployment, a shaky stock market and difficult credit conditions.
The minutes noted that members are expecting further declines in homebuilding and business expenditures, and cited increasing consumer loan delinquencies. They also predicted that unemployment would rise "significantly into 2010" to levels higher than expected at the October Federal Reserve meeting.
"All told, real GDP was expected to fall much more sharply in the first half of 2009 than previously anticipated, before slowly recovering over the remainder of the year," said the minutes, citing ongoing fiscal stimulus actions that were expected to begin helping the economy revive heading into 2010.
A report by CNNMoney.com also noted that unemployment is expected to be seven percent nationwide when figures are released later in the week, which would mark the highest such level in 15 years as well as an expected loss of 475,000 jobs in the fourth quarter of 2008 alone.
Investors should brace for tough 2009
Investors should be prepared to weather a difficult 2009, judging from the recently released minutes of the latest Federal Reserve meeting. At the meeting, members revised their economic outlook for 2009 down "sharply," based on an expected substantial decline in the Gross Domestic Product for the fourth quarter of 2008 and other factors such as rising unemployment, a shaky stock market and difficult credit conditions.
The minutes noted that members are expecting further declines in homebuilding and business expenditures, and cited increasing consumer loan delinquencies. They also predicted that unemployment would rise "significantly into 2010" to levels higher than expected at the October Federal Reserve meeting.
"All told, real GDP was expected to fall much more sharply in the first half of 2009 than previously anticipated, before slowly recovering over the remainder of the year," said the minutes, citing ongoing fiscal stimulus actions that were expected to begin helping the economy revive heading into 2010.
A report by CNNMoney.com also noted that unemployment is expected to be seven percent nationwide when figures are released later in the week, which would mark the highest such level in 15 years as well as an expected loss of 475,000 jobs in the fourth quarter of 2008 alone.
