Also, foreign economies appear to be slowing
, which could damp demands for exports; and continued nervousness is evident in the behavior of participants in financial markets, keeping risk spreads relatively elevated.
While the members assessed risks surrounding such a forecast as decidedly tilted to the upside, the slowing
of the expansion should keep resource utilization from rising substantially further, and this outlook together with the absence of significant early signs of rising inflationary pressures suggested the desirability of a cautious "wait and see" policy stance at this point.
The transition between slowing
down and speeding up would have occurred when the universe was about one-third its current age, or about 9 billion years ago, astronomers calculate.
The employment cost index for private industry workers rose more rapidly in the second quarter after a sharp slowing
in the first quarter, with the acceleration in compensation largely reflecting a pickup in wage and salary growth.
The considerable margin of slack in resource utilization, though decreasing, was projected to be associated with appreciable further slowing
in the underlying rate of inflation.
In addition, improved systems for monitoring and controlling inventories, which have been installed in recent years, enabled firms to react quickly to signs of slowing
Despite the recent slowing
, however, the twelve-month change in the CPI as of May, at 4.4 percent, was about the same as that recorded for each of the past three years.
The response by producers to the overall slowing
in demand in 1989 was relatively rapid and, on balance, prevented an excessive buildup of factory inventories.
in sales of motor vehicles was most pronounced during the fourth quarter of 1989, reflecting a "payback" for sales that had been advanced into the third quarter and a relatively large increase in sticker prices on 1990-model cars.
Much of the slowing
in overall economic growth in the first half of 1989 reflected a deceleration in consumer spending.
Economic growth slackened in most of the major foreign industrial nations in the fourth quarter, but data available so far in 1989 did not indicate further slowing
Recent increases in mortgage rates likely portend some slackening in the pace of homebuilding, and the growth of consumption expenditures also should begin to taper off from the rapid pace of 1988, as a slowing
of expansion elsewhere in the economy damps the growth of real disposable income.