Reply #6: Good news, bad news: US economy too strong for interest rate cuts

[ozymandius]

An expected economic slowdown hasn't materialized, easing fears of recession ahead of the Fed's latest policy statement.

The US economy was expected to cool a bit along with temperatures this winter, but that slow patch is looking more like business as usual.

The housing slump is still serious. Detroit carmakers are still in trouble. But with oil prices dropping since last summer, overall economic activity keeps chugging along even as inflation looks to be easing.

The momentum has spoiled hopes that the Federal Reserve will cut interest rates anytime soon. The Fed is expected to note signs of strength in the economy, and continued vigilance against inflation, when it releases its latest policy statement Wednesday.

http://www.csmonitor.com/2007/0130/p01s03-usec.html