Washington, Jul 19 (Prensa Latina) The fear of the US Federal Reserve (FED, US Central Bank) on the worsening of the high risk real estate and mortgage crisis in the country became clear Monday with the publishing of the bills from its last meeting.
There is a great concern for the situation to get worse and degenerate a bigger economic contraction, even with the release of the inflation.
Some of the participants in the meeting this Monday believe it is possible a severe and prolonged economic deceleration occurs, motivated by a greater restriction to credit disposal and the constant weakness in the real estate market.
FED had considered a reduction of the Gross Domestic Product in the first semester of the year, followed by a slow recuperation in the second semester.
Technically, it is considered that a country enters in a recession stage when its GDP is contracted by two consecutive quarters of a year.