Federal Reserve predicts new economic crisis

A recent meeting of the US Federal Reserve revealed that members of America’s central bank are not very optimistic about the future of the country’s economy.


Even though the Fed is at odds regarding what to do in terms of helping economic growth — and it still remains unclear whether or not a third round of quantitative easing (QE3) is to come — the official forecast from the bank suggests that the US may be sliding into a crisis.


Details from the Fed’s last meeting have been released to the public, and the minutes from that gathering reveal that the economists that oversee much of the inner-workings of the country’s fiscal policy remain concerned with the state of America.


Among the items discussed in the meeting ishow a lack of initiative on the part of the US Congress could bring further strain on America’s economy, specifically that a failure to avert tax hikes and planned massive spending cuts later this year could be catastrophic.


Read the full story here...