Economic Growth Moderate Says Federal Reserve Report

Article excerpt

WASHINGTON (AP) - The economy grew at a moderate, sustainable pace over the past three months, the Federal Reserve said in a report Wednesday which indicated the central bank may no longer feel the need to push interest rates higher.

The survey of economic conditions presented a picture of an economy that was slowing in line with efforts by the central bank over the past year to dampen demand by pushing interest rates higher.

Some economists have raised fears that the Fed's efforts to fight inflation by pushing interest rates up could topple the country into another recession.

But the Fed saw no evidence of a dangerous slowdown in any sector of the economy, according to the comments submitted by the Fed's 12 regional banks.

Many analysts believe that the Fed, which was aggressively pushing interest rates higher in late December and January, has now stopped tightening to await the results of its earlier inflation-fighting efforts. …


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